The way you think about money has probably changed a lot since you were young. In the late 70s and early 80s, excess was the name of the game. Get it, spend it, show it, flash it: cash ruled, but people didn't necessarily think long-term.
Now, it's a whole new ballgame. You're older, wiser, and starting to look toward retirement and possibly leaving a legacy for your family. I have one financial tool that can help you do both: life insurance.
Goal #1: Save for Retirement
How does life insurance help you build a retirement fund? After all, you're paying for it month by month. How can spending help you save?
Permanent life insurance comes with a cash value account. With every payment you make, that value grows, thanks to principal from your payment and the interest it earns. The longer you own your policy, the bigger your cash value account. This money isn't a part of your death benefit, either—it's a perk that only comes with permanent insurance (not term). In about 15 years, by the time you're ready to retire, you'll have tens of thousands of dollars to use for anything you like.
If you're worried about having enough for daily living expenses during retirement, that money can be used to help pay the bills. If you know you'll have enough to get by, you could use that money to take a life-changing trip, pay off a mortgage, put a child or grandchild through college, or get that collector car you've always wanted.
Goal #2: Build a Legacy for Your Family
New Year's Resolutions are all about making positive changes for you...and the people around you. Life insurance is one of the most unselfish decisions you can make because it protects your family in two unique ways:
- If something happens to you. In your 20s, you probably thought you were invincible (we all did!). But these days, gray hair, extra weight, high blood pressure, hearing loss...the hits just keep on coming. It's only natural to be more aware that our time here is limited. That makes it extra important to show your loved ones you care while you can. Life insurance protects them from financial insecurity if they lose you. They can use some of the money right away, to pay for day-to-day living expenses, and invest the rest to keep them financially secure for years to come.
- If you live a long, healthy life. Let's say you sidestep all the health problems that crop up in your 50s, 60s, and 70s—congratulations! Life insurance provides a ready-made legacy for your kids. After you pass away, your beneficiaries will receive the death benefit 100% income-tax free. Use your retirements funds the way you want, knowing your family is already taken care of.
Life insurance helps you accomplish so many financial goals all at once.