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"I know I need it, but I don't want to think about it now."
This is a common response when the topic of life insurance comes up, yet it remains a product that could provide a strong foundation for your financial goals.
The primary benefit of life insurance is to provide for your family, helping them meet daily expenses so they can continue the activities of daily life should the unexpected happen to you. Proceeds from life insurance can be used by families to pay for ongoing expenses, like credit card and mortgage bills. The proceeds can also help cover daily necessities like groceries, gas, and other expenditures, pay for college tuition and allow families to keep commitments to one another.
Without adequate life insurance coverage, many families would be under great financial duress to meet the ongoing financial obligations of their new situation. Having financial resources available after a loss can give families the time they need to grieve and figure out what their future looks like.
Life insurance may also protect one's spouse against sharp reductions in future pension and Social Security payments by replacing assets cut short by premature death. Careful preparation and reviewing all your accounts with a financial professional can help you understand your pension coverage and whether or not you are prepared for the future.
Life insurance can help beyond the home, too. For example, life insurance can help business owners and others with significant assets pass those assets on to their loved ones in a tax-efficient manner. It also enables people to support nonprofit organizations through charitable gifts.
Life insurance may not be a popular topic, but the security it offers brings a level of comfort that many people can't do without. Also, many people will find that life insurance coverage can be a key component of a retirement program as they plan for their long-term financial goals. None of us can control whether we will have tomorrow, but protecting the people in our lives is something we can take control of today.
This article was prepared by Thrivent Financial for use by local area representative Wealth Advisor Brad A. Nelson, CFP®, RICP®, CLTC®, FIC, Financial Associate Ann M. Backes and Financial Consultant Benjamin D. Weerts, FIC, CLTC®, RICP® and, at 350 NW 1st Avenue, Suite H, Grand Rapids, MN 55744, 218-326-0068. Thrivent Financial is looking for talented individuals to join the organization. Those interested in a career with Thrivent Financial can visit www.thrivent.com/careers.
