by Heather Mosher

Life Insurance Planning: 5 Things Young Families Should Think About


It used to be easy when it was just ”you” to think about.  Life was pretty simple, your money was yours, the things you choose to do or not do were impactful only to you.  To a large degree, you were accountable only to yourself.

Fast forward a few years and you have a loving family that not only cares about you – but relies on you for things like income, a roof over their head and food on the table.  If you find yourself in this position then it may also be time for family life insurance planning.  Knowing your family will be taken care of even if you aren’t around is one of the single most loving things you can do.  Here are a few things to keep in mind as you work through this process.

  1. You can’t forsee the future.  What might seem like “enough” coverage today will most likely be far too little in the future.  Costs go up, college education increases, homes become more expensive, and so does travel expenses. Have a conversation with your insurance advisor about a family needs analysis.  This is a simple way to get the best idea of what your future costs might look like.
  2. Don’t forget mom and the kids.  It is very common for the breadwinner (often the male) to think they only need life insurance on themselves.  In reality, the role of a mother (whether you work inside or outside of the home) can be the most costly one to fill.  Additionally, there are a number of really great reasons to buy kids life insurance.  (We talk about that in another blog.)
  3. Think about combining products.   It might make sense to purchase a combination of permanent (or whole) life insurance along with temporary (or term) life insurance.  This will help take care of the larger, more immediate needs such as a mortgage payoff or college tuition while also focusing on the long term needs such as final expenses.  Nowadays there are many great products that meet both purposes rolled into one plan.
  4. Understand how life insurance can enhance your family’s investment strategies.  Permanent life insurance plans generally offer cash value accumulation.  There are many ways to structure this type of purchase so it’s worth speaking to an advisor to get the details!
  5. Don’t rely solely on the office.  Even though you might have a great life insurance plan through your employer, it makes sense to purchase something that YOU can control.  For instance, what if you leave employment or are laid off?  Does that work sponsored life insurance plan transition with you?  Or, is it too costly to convert into a single plan?

At the end of the day, you should feel really good about the decision to purchase life insurance.  Buying any life plan is better than not making a decision.  Talk to your insurance advisor about scheduling a meeting to discuss what is right for your family.  Plan for the future, today!

National healthcare open enrollment starts November 1st and ends on December 15th. To make an appointment with one of our trusted advisors please contact us at 906.228.7500.

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