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May 26, 2016
Charlie and Annette are living their dream right now. He’s making a good income as an accountant, meaning Annette can stay at home and raise their three children comfortably.
Charlie’s ability to earn an income is his number one asset. But what would happen to his family if he got too sick to work, suffered an accident and couldn’t work, or passed away?
They would be just fine, because Charlie is smart: he’s using insurance products to protect his family’s biggest money-maker—himself. In the event of an emergency or an accident, Charlie and his family won’t have to give up their dream.
To gain Charlie’s peace of mind, it’s essential to learn the options available to your family, so they can survive and thrive, even without the income of your primary breadwinner.
Consider some of the following insurance products to protect your family.
Life insurance is a contract between you and an insurance company. As part of this contract, the insurer agrees to pay a lump sum to your beneficiary in the event of your death, and you agree to make regular (usually monthly) premium payments.
There are two kinds of life insurance:
Term life insurance is a contract for a designated period of time, such as five, 10, or 20 years. Your premium payments remain the same over this timeframe.
Term insurance is typically less expensive than permanent insurance. Over the term of your insurance contract, your premiums pay for the insurance alone. Your policy does not accumulate value.
Permanent life insurance policies last as long as they are in place. These policies often have higher premiums than term insurance. However, unlike term insurance, some or all of your premiums are invested, rather than just covering the insurance itself. If left for long enough, the cash value a permanent insurance policy will greatly increase.
There are many benefits to life insurance, but some include:
Mortgage insurance protects your home if, for whatever reason, you default on your mortgage. It pays the lender the remaining balance owed if you are unable to do so.
There are many ways to purchase mortgage insurance.
One option is to buy mortgage insurance from the bank or financial institution that sold you your mortgage. If you are thinking of going this route, it’s important to consider [What Banks Aren’t Telling You].
Another option is to include mortgage protection in a life insurance policy.
Unlike mortgage insurance a life insurance policy with mortgage protection puts the money in your family’s hands, rather than solely paying the lender.
Some reasons to consider insuring your mortgage:
Disability insurance keeps money coming in if you are unable to work due to an illness or injury. It protects your income, whether your decreased cash flow is unexpected or from a chronic disease.
Disability insurance is just as important as life insurance. An average 30- to 40-year-old is much more likely to be temporarily unable to work than he or she is to die before the age of 65.
A few reasons to consider disability insurance:
What’s right for you
Protecting your income through insurance products safeguards your family’s future. But finding the right policies that work together to secure your income can be a daunting task. And the life insurance policy that made sense when you had young children may need updating when they are older and independent. Contact SafeBridge today to learn how we can help you protect your income.
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