By Joanna Silosky
What is life insurance?
Most of us think of it as security, a backstop for family finances in case the primary breadwinner dies unexpectedly. We also may think of it as fodder for soap operas. A rich man dies mysteriously, and his family collects the giant insurance policy. Was there foul play?
Most of us don’t realize life insurance can be so much more. The right life insurance policy can assist in wealth accumulation by being indexed to the stock market. This means that money put into the policy grows while the stock market is growing. However, unlike directly investing in the stock market, insurance policies provide downside protection, which means that if the stock market goes down, your invested wealth remains stable.
The right policy can also provide Long Term Care benefits. This option gives elderly insured an additional source of income, if his family needs assistance with providing care.
Some policies also offer a chronic illness accelerated death benefits rider. This means that, in the event of certain qualifying chronic illnesses, the family can access a life insurance policy’s benefits before death, again to provide assistance in paying for an elderly policy owner’s needed care.
Another policy benefit may be a critical illness rider, which provides a lump sum payment to the family in the event of a diagnosis of certain qualifying illnesses, such as cancer. This is separate from health insurance and can be used to replace lost income, provide child care, or contribute whatever the family needs to focus on supporting the sick person.
It’s important to know that not every person will qualify for every life insurance policy. However, if you are committed to strengthening your family’s foundation and improving your financial future, your local financial professional can help.
Please feel free to reach out with questions! I look forward to helping you build your future.
