How Life Insurance Can Help

The Four Perils of Life and How Life Insurance Can Help

While there are many roadblocks and detours in life, there are certainly perils as well.


Here are four as they relate to your financial life and your need for life insurance.

Peril 1: Dying too soon.
We all know someone who’s died at a young age. There are tragic stories of people in the prime of their lives who pass away, like good Samaritan Preston Newby, who was struck and killed while offering aid, leaving behind a young wife and two sons. You can watch his story here.

While the statistical probability of passing away at an earlier age is low, the financial consequences of not planning for that possibility can be high. The younger the family, the more protection you generally need. Often there is still student debt and a mortgage, as well as day-to-day living expenses that need to be addressed. Additionally young children will require years care and have future educational needs. Life insurance financially protects the family you love.

Peril 2: Living too long.
Given medical advances, we are living longer than ever. That means planning for a long retirement. In the past, planning for a 15-year retirement was common. Now it can be 20 years, 30—or even longer. You may have a greater number of years in retirement than the actual number of years you worked. That means the need to save is critical. A permanent life insurance policy can provide cash value that can be used to supplement your retirement income.

Peril 3: Becoming disabled.
Statistics tell us that in our working years there is a higher probability of becoming disabled than dying. That’s why disability insurance is so important. It ensures that if you are unable to work because of illness or injury, you will continue to receive an income and make ends meet until you’re able to return to work.

In addition, many life insurance contracts allow you to add a disability waiver to cover certain fees and expenses in the event of a total disability. We’ve already established that life insurance is an important asset, but should you become disabled, you may not be able to afford it. Permanent life insurance with a waiver of premium for disability can help keep the policy in force and continue to provide the peace of mind you need.

Peril 4: Needing long-term care.
You are also faced with concerns over long-term care costs. You may need home modifications or develop dementia and Alzheimer’s. These costs are not covered by regular health insurance or Medicare. Nursing home stays or home health care costs can have a detrimental effect on your portfolio.

What if you were forced to access your retirement funds to pay for long-term care needs? Would you still have what you needed for retirement living? Instead, a permanent life insurance policy with a long-term care rider can provide payments to help cover long-term care costs.

Life insurance, especially a permanent policy that offers flexibility to meet your changing financial needs, is an important financial consideration. An insurance agent or financial advisor can help walk you through your options and get the right policy to fit your needs.


Marvin H. Feldman, CLU, ChFC, RFC, President and CEO of Life Happens

by Marvin H. Feldman

Marvin H. Feldman, CLU, ChFC, RFC, is President and CEO of Life Happens.

Independent Insurance Consultants
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