Insurance gets a bad rap and, as policies go, life insurance might be at the top of the list. But we’d like it to be on the top of your list for another reason. We often think of insurance as a means to paying for funeral expenses, but it can cover situations you might incur that you probably haven’t even considered.

 

Supplemental cash. Not all life insurance can provide additional retirement income, but if you’ve purchased the right kind, it can offer a lifeline when you need it most. Supplemental income is only possible with certain types of permanent insurance, including whole life, universal, and variable life insurance policies, so if this is of interest to you, you’ll want to have a conversation with an insurance agent before making the purchase.

 

Life insurance, at its core, is about protecting the ones you love after you’re gone, but some insurance can help you as you move through life’s stages. For example, perhaps your parents purchased life insurance, and now they require care as they age. If they purchased life insurance with a long-term care rider, the coverage may be able to help defray caregiving costs such as those incurred from assisted living, at-home, or a nursing facility.

 

College is costly, and often a parent cosigns on the loan, leaving them on the hook to get the debt repaid should you be unable to cover it. A private student loan is part of your estate debt, and if you die before paying it, wouldn’t you prefer that your life insurance policy pays off this loan instead of your parents?

 

Business owners need to be covered by several types of insurance. Both key person and personal life insurance are designed to protect the family and cover a succession plan. Additionally, other types of insurance are essential if you don’t have access to employee benefits like a retirement account or disability insurance.

 

Extreme hobbyists should pay special attention to the needs and benefits of life insurance. Extreme refers to high-risk activities or lifestyles such as scuba divers and rock climbers. Equally important to life insurance for these hobbyists is coverage for anyone with a high-risk job (think firefighters, workers at high heights, and even NASCAR drivers). If you fall into these categories, talk with an insurance agent since a traditional policy may not be enough coverage.

 

Life insurance goes well beyond covering just funeral costs and might be worth adding to your portfolio. If you’ve got questions, we’d like the opportunity to help you find the answers.

 

 

Adapted from Business Insider1

Securities offered through SCF Securities, Inc. Member FINRA/SIPC 155 E. Shaw Ave. Suite 102, Fresno, CA 93710 | (800) 955-2517 | Fax (559) 456- 6109. SCF Securities, Inc. and Creative Financial Strategies LLC are independently owned and operated. www.scfsecurities.com Note: Securities offered through SCF Securities Inc., Investment Advisory Services offered through SCF Investment Advisors, Inc.This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.

1 https://www.businessinsider.com/personal-finance/reasons-to-get-life-insurance-you-havent-thought-of-yet

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