Protection Against Loss of Income
Guard on Unforeseen Circumstances

ASSET PROTECTION

Many people assume that their company or workplace will adequately take care of them if something happens. This is one of the biggest errors anyone can make. While insurance is not a glamorous subject, spending a couple of hours with one of our financial advisers can be the difference between leaving a legacy or a liability to those who care for you.

 The decision can be even harder when you are younger. We hope that this will help you to make an educated decision. 

Providing for Your Dependents If You Die or are Injured 
Let's start with the most obvious reason for why someone should invest in insurance ... the fact that it can replace your income for your dependents. You may want your children to go to college and your family to enjoy a certain kind of lifestyle. Likely, you still want this to happen even if and when life happens. But, if you are the primary bread winner for your family, they may not be able to afford it if you cannot provide an income and do not have enough savings to cover their expenses. You can address those concerns by buying enough life/health insurance.

You Have Options
You have the option of buying a term insurance policy, which would cover you for a set number of years, generally ranging from 10 to 30 years. These policies pay a benefit only during the term period that the insurance covers. These can be a good option if you want coverage for a set period, say, until the children finish college. You also have the option of buying a whole life policy, also known as permanent insurance. There are several types and sub categories of each type, and they usually pay a benefit to your beneficiaries when you die. The amounts the premiums will be will depend on the policy you purchase.

Insurance May Be a Good Investment 
Many young professionals are looking for investment options for their savings. For these individuals, a variable life insurance policy can provide a good addition to their investment portfolio, as it allows investments in stocks, bonds and mutual funds. These investments can allow your cash value to increase more quickly, though there are some investment risks. When choosing a policy with an investment feature, you can limit your risks by choosing one with a guaranteed minimum death benefit.

You Can Accumulate Cash
With insurance, you also have the possibility of allocating a portion of your premiums to a cash accumulation vehicle, an option usually available under universal life insurance policies. This accumulated amount can serve as a cash reserve, and can be used to pay insurance premiums if your disposable income is no longer sufficient to pay those premiums. However, you will need to ensure that the available cash is sufficient to prevent the policy being lapsed due to unavailability of cash. 

The Bottom Line
Life insurance is not for everyone. But, you should not dismiss it without doing some research. If you have others who depend on you financially, it is very likely that you need it. Your financial advisor can help you to decide which type of policy is best for you. Buying life insurance can be one of the best financial steps that you take for you and your family.