Happy Life Insurance Day!May 02, 2023
It may seem strange to celebrate such a day, but I find it important to recognize the value of life insurance. Not because I hold an active life and health insurance license, or because I am a registered financial advisor, or even because I teach about life insurance. I'm excited because I know the impact it has had on friends and loved ones. Today, I want to share a few of those stories with you, in hopes that you'll see the various reasons for carrying life insurance and consider evaluating your own portfolio.
I had the privilege of writing life insurance policies for each member of a friend's family, including his newborn daughter. Four years later, she was diagnosed with Type 1 Diabetes, and her insurability for future policies was uncertain. Fortunately, we structured her policy in a way that allowed her to increase coverage by five times without proving she was healthy or had her blood sugar under control.
Another individual I met with was a retired firefighter. He elected the straight life option for his pension distribution, which meant higher monthly payments but no further payments to his spouse upon his death. To ensure his wife's financial protection, he used a portion of the pension payment to purchase a large life insurance policy, using the tax-free death benefit to create a safety net.
A friend of mine co-owned a business with a partner, with each owning 50%. They purchased life insurance equal to half the business on each other. When my friend's partner passed away, the death benefit was paid to the surviving partner, who used the funds to buy out the deceased partner's estate, thus owning 100% of the business and making his family whole.
Life insurance may not be exciting, but it is the sincerest love letter you can write to those who depend on you. It provides peace of mind and financial protection for your loved ones when they need it most. So, take a moment today to evaluate your own life insurance needs and consider the impact it can have on those you care about.
Happy Life Insurance Day!
VP, Member Engagement
Teaching Tax Flow
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