As we age, the odds of incurring an injury or major illness that will prevent us from performing simple daily functions increase substantially. Today, one in three people over the age of 65 will require assisted care of some sort. Past age 75 the odds increase to where one in two will need nursing care. With the average cost of nursing care now surpassing $7000 a month, it’s no wonder that long term care often decimates the savings and assets of the seniors who need it.
The purchase of a life insurance policy will never make most peoples’ top ten list of favorite things to do. After all, there is a lot not to like in the whole process of buying life insurance. With hundreds of products from which to choose, it can be confusing. Insurance contracts can be complex and mind numbing. Some insurance agents can be annoying. And, for some people, paying premiums can be irritating.
For many people, life insurance forms the security foundation of their financial plan. While most financial planners recommend that life insurance be purchased for its protection, and not as a primary savings vehicle, few would argue that cash value life insurance doesn’t have some fairly unique and attractive savings features. When these are considered in the context of a person’s overall savings and investment strategy, they may offer some advantages especially for providing additional tax diversification of income sources.
Who doesn’t like options? We love them when buying a car, and we expect them when ordering lunch off a fast-food menu. When buying life insurance, however, too many options can not only increase confusion, it can often lead to making the wrong choice, or worse, no choice at all. With life insurance, it’s not quite as simple as choosing between a sedan and a coupe; life insurance options are far more complicated and far-reaching and there is definitely no one-size-fits all solution.
The decision to go forward with your plans to start a family is a joyous one, but it can also lead to increased stress especially if your financial house has not been child-proofed. Considering that, on average, the cost of raising a child now exceeds $300,000, there’s little margin for error for most young families that have other important financial goals to achieve. There’s no reason why you should get caught off guard or caught in cash crunch as long as you plan ahead.