Adulthood is often associated with a sense of freedom, independence, and opportunity.
Of course, with adulthood comes a host of responsibilities as well, including financial planning. However, all the budgeting, saving, and investing may not be enough to provide the security your family needs. For this reason, it’s paramount to remember accounting for adequate life insurance when visiting your financial plans.
So, where exactly should life insurance fit into your financial plan? According to The Balance, insurance places in the top five financial planning basics, after budgeting, cutting expenses, getting out of debt, and saving for retirement.1 The Balance also notes that when working hard to build a strong financial foothold for your family, equal time and effort needs to be spent protecting the foundation you’ve created.1 This can be done a variety of ways, some of the most notable include investing in life insurance, disability insurance, and homeowners’ insurance where applicable.
While that may seem like a lot of insurance to account for, Forbes stresses the importance of insurance even more so than The Balance, placing its value just behind making payments on your home or car.2 Forbes also mentions the importance of accounting for life insurance when planning for your financial future,2 but what makes life insurance such an essential part of your financial planning?
According to U.S. News & World Report, “as we transition into adulthood and take on growing responsibilities and family obligations, life insurance soon becomes fundamental to having a comprehensive [financial] plan.”3 U.S. News & World Report goes on to note that “protecting your assets in your financial plan with life insurance can help mitigate future risk,”3 and that beyond providing a death benefit, “life insurance may also come in handy for more sophisticated planning.”3
The bottom line is, life insurance isn’t something extra or something that you should consider getting someday in the future. Life insurance should be a priority in your financial planning now, especially if you have loved ones who would be financially impacted by your death.
If you have any questions about what type of life insurance or how much life insurance you should buy, contact a financial advisor, an independent broker, or a licensed insurance agent. Any of these professionals can help you navigate the right life insurance for you, helping you make sure that every element of your financial planning is squared away.
The Balance, Financial Planning Basics – Personal Finance 101, 2019
Forbes, How to Prioritize Your Financial Goals, 2018
U.S. News & World Report, 5 Things to Know About Your Life Insurance, 2017
Categories: Insurance, Life Insurance