Life Insurance and The Financial Risk Spectrum


Empower financial risk spectrum

Life Insurance and The Financial Risk Spectrum

The above graphic from AIG demonstrates a broad overview of a consumer’s financial risk spectrum over the course of their life. This is a great demonstration of how you can benefit with Term Life Insurance.

Pre-Retirement Years

As you can see on the left side, during an individual’s pre-retirement years there are three big risks that get smaller over time:

  • income replacement
  • mortgage payoff
  • college expenses for children

Pre-retirement consumers are typically young, raising a family and beginning to build their personal assets – think homes, retirement funds, and savings accounts. The great concern in this phase of life is that the head-of-household, or spouse, could die prematurely. Life insurance will protect the consumer’s family should this happen.

Replenish the Bucket

Having life insurance provides the financial support loved ones may need in the event of death. For instance, consumers who have young children who need money for education, or a spouse who may need income to pay off the mortgage, and/or other debts accumulated as a couple. Life insurance is a way to “replenish the bucket for the surviving spouse”, said Enrique Torres, Empower’s Life Product Specialist.

Post Retirement Years

On the right side of the graphic we can see post-retirement years (typically between 65-85 years old) with three big risk factors getting larger over time:

  • health care costs
  • a reduction in income on social security
  • financial risks

As consumers age, a great concern becomes exhausting retirement savings and potentially burdening family members. For instance, expensive medical bills or an unexpected economic risk could derail their retirement. Once again, permanent life insurance offers protection should this happen.

Permanent Life Policy

One of the benefits of a permanent life policy is the ability to build up cash value over time. The cash value within a policy is, in basic terms, the balance remaining after a portion of a premium payment is applied to insurance costs. It is this feature that provides a few different uses for life insurance in retirement and could provide, or at least compliment, an individual’s retirement income.

Solution

From left to right of the above graphic, the most affordable solution that covers consumers through each risk and phase of life, is life insurance.

Choosing the best life insurance plan isn’t always easy, but why wait a moment longer to secure your family’s future? Act now. Reach out to one of our Life and Financial experts today. 1-888-539-1633

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