Parents Say They're 'Yoda' About Finances
North American Precis Syndicate
No matter what your needs, goals, hopes and dreams, a solid life insurance strategy can grant you the peace of mind you deserve. (NAPS)
(NAPSI)—Parents identify with Yoda more than other Star Wars
characters when it comes to family finances—according to a survey by
New York Life. Yoda is patient, uses past experiences to guide future
decisions and finds it important to teach the next generation.
Yet, many parents aren’t following Yoda’s most famous saying
“Do. Or do not. There is no try” when it comes to taking the most
basic step to secure their family’s finances: buying life insurance.
Research continues to show that parents recognize the value of life insurance
in protecting their family but haven’t been able to “Do.”
Here are four common reasons (and the reality):
1. It is hard to get started—Not
anymore. Companies are doing a better job at providing simple information and
financial tools on their websites. For example, on New York Life’s
site, you can now create a plan around what’s most important to you and
access educational material to help you get started.
2. I have it at work and that is
enough—Not really. Life insurance through work is very beneficial
but typically covers one year of your salary. If you were to die, that
benefit could run out quickly. Experts agree that most people need 10 or more
years of their salary covered by life insurance.
3. I can’t afford it—You
probably can. People are surprised when they find out how affordable life
insurance can be. While having a child brings lots of new expenses, life
insurance should be at the top of that list so that your child’s plans
for the future can stay on track even if the worst were to happen.
4. My life could change—Not
to worry. Whether you change jobs, have more children, welcome your parents
back under your roof or need to pay for college, your life insurance plan can
change, too. A professional life insurance agent can help you build a
strategy that provides the flexibility you need.
Choosing the right type of life insurance depends on your needs.
For example, term life insurance is a good place to start if your needs
are temporary or short term. It offers affordable coverage for a set period
If your needs are long term, a permanent policy (most commonly whole life)
might be the best option. In addition to the insurance protection, you build
up cash value within the policy that grows on a tax-deferred basis and, if
structured properly, can be accessed tax-free. If needed, the cash value can
be accessed via loans to help pay for a child’s education or any other
important financial need (though loans accrue interest and reduce cash value
and death benefit).
You may find that a combination of permanent and term insurance is best
To start planning for your family’s future, visit the Agent Locator
“Parents can now create a life
insurance plan around what’s most important to them and access helpful
educational material on New York Life’s site. http://bit.ly/2L9o97T”
On the Net:North American Precis Syndicate, Inc.(NAPSI)