Thursday, March 6, 2014

Life Insurance Can Help Families Cope With The Unexpected

By: Edward L. Blais, JD, CIC

Preparedness goes a long way toward coping with the curveballs life throws at us. It’s not necessary for us to report for spring training to be ready for the unexpected, but a consultation with our insurance agents could help whip us into solid financial shape.
Your agent can show you how families can leverage life insurance to replace income when a breadwinner passes or when a relative such as a grandparent wants to help out with college or wedding expenses. 

Studies show that when the income of a principal earner is lost, it takes families several years to recover financially. It’s possible to alleviate some or all of such a burden with life insurance, which can pay for funerals and burials; credit card debt; loans; legal fees; estate taxes; immediate household expenses; long-term obligations; or future costs. I am confident you want to ensure that your family will not lose its home, medical expenses will be covered or your children will be able to pursue their educational goals.  

Life insurance coverage can also be used to replace retirement savings a family was anticipating. With the appropriate coverage, a spouse or domestic partner will still have a stable and comfortable retirement even if his or her significant other has passed away.

Ask your agent if a select term or whole life insurance policy that covers one or two income producers is best for you and your family. Also, inquire about what policy riders, some of which might remain level for 30 years, are suitable. In addition, you might be able purchase a children’s term rider that you can convert at the time of expiration to provide lifetime coverage for each child.

Because grandparents are considered to be extended caregivers of children, they can purchase life insurance in a grandchild's name. Such policies are an excellent tool families can utilize to provide financial protection for their most precious “possessions.” If a child is under the age of 14 ½, parents must sign the policy.

We would be happy to sit down with you to review your options and design a plan customized to your specific needs and budget. To schedule a complimentary policy review, call Blais Insurance at 725.0070.