Now and then, some shocking events happen that remind us just how disturbing times of uncertainty can be.
If you’re a boomer, it’s essential to make sure your financial plan is secure, and that’s especially true at this particular period. It all starts with gaining knowledge of the fundamentals.
Though several boomers have got and used recommendations to draw a budget, take care of debt ahead of its due date, and save for the future, another crucial tip entails incorporating a level of financial protection.
Despite that, according to recent Life Insurance IQ research conducted by AIG Life & Retirement, it was discovered that even though Americans know that life insurance is essential, 50% of them have no life insurance or aren’t certain if they do.
Thus, what do you need to know about life insurance, as a boomer, to provide security for your future? Below are reasons we believe the respondents to our Life Insurance IQ Research had the opportunity to gain more knowledge:
The Fundamentals
Before you’ll be able to understand the nuances of life insurance, it’s essential you first know the basics, such as the value of the coverage you have and how much you require.
Of those with life insurance, around 25 percent don’t have an idea what the value of their coverage is. Among couples, around the same number have no idea what the value of their partner’s life insurance coverage is.
If you don’t have life insurance yet and are unsure of the specific value you need, lots of resources are available to assist you, including online calculators, financial experts that can guide every step of the way.
It’d help if you also picked the life insurance type that is most suitable for your individual needs, because there are many options available to select from.
Life Insurance Isn’t Just All about Leaving a Legacy
Most people are aware of the fact that life insurance offers a death benefit, allowing for a tangible amount of money to be left to your loved ones after your demise.
This life insurance’s payout of yours can serve different purposes, from paying off a mortgage, to settling some credit card debt, taking care of the future college tuition of your young child.
Some or all of your death benefit might also be sent as a donation to your favorite charities or used for any other purpose you specified.
However, where our research discovered a huge knowledge gap was the aspect of understanding the vital benefits life insurance can also offer while you’re still alive.
For those financial uncertainties (things you may find difficult to muse over but must be ready for), life insurance will provide protection and put your mind at rest.
Developing a Supporting Retirement Income Stream
Certain life insurance policies (often known as permanent life insurance) offer an option called cash value. You’re allowed to take from this money for any range of reasons, such as making use of it as supporting retirement income in your golden years.
For instance, that cash value can offer you protection when the market experiences a downturn.
In such situations, you could decide to take out your policy’s cash value, rather than your retirement savings that might provide your investments with the time for recovery when the market rebounds.
Providing Coverage for Health Care-Related Costs
Data from our research shows that Americans are more apprehensive of chronic illness than they’re of dying young or running out of money.
However, a point several boomers fail to realize is that they can make use of some kinds of life insurance to assist themselves, in case they need help for covering healthcare-related costs or other medical bills.
There are many ways permanent life insurance can be made use of in covering this kind of expenses.
Examples are gaining access to the policy’s cash value, obtaining a policy loan or via a rider, like a chronic illness rider, which enables a policy owner to get access to a portion of their death benefit while they’re still living.
Developing your plan around potential issues before they become urgent can give you much peace of mind.
If you want to give your life insurance IQ a boost, work with a financial advisor.
With Gratitude and Love
Dewvy 
