Preservation of wealth involves risk-management strategies that address the level of risk you take in the accumulation phase of life. It also involves the protection of assets once you achieve your financial goals (achieve critical mass). This may or may not involve a reduction in risk during retirement. Management of risk at the portfolio level, both before and after retirement, is certainly important.
What happens if you die during the accumulation phase of life? If you are single and have no dependents, the financial consequences of a premature death may not be catastrophic.
The importance of life insurance becomes critical when a death prevents dependent survivors from achieving their financial goals and objectives. An example of this situation could be the premature death of you or your spouse whose income has been critical to paying for ongoing living expenses as well as the source of retirement savings for your future.
Any financial planner who has been in business for a number of years has probably had one or more clients that have gone through such catastrophe. The implications are immediate and severe. Without life insurance, a family’s lifestyle can be adversely affected overnight, resulting in permanent changes.
For most clients, life insurance can be purchased at very reasonable rates, particularly if it is purchased at an early age. The goal is to purchase enough life insurance to ensure that financial objectives can be met.
Although every situation is unique, term life insurance is almost always the best way to go. It is inexpensive, offers no savings component, and can be purchased for terms to coordinate with retirement or the achievement of critical mass.
Even though it is not the most exciting part of financial planning, it can ensure that financial goals are achieved, regardless of the curves life might throw at us.
Please call or email if we can help you determine the plan that is the right fit and level of coverage you need to ensure the achievement of your unique financial goals and objectives.