No one can predict the future. However, we can take action to make sure our loved ones will be protected by securing life insurance for them today. Life insurance can bring peace of mind, offer income protection, and build a strong foundation for your family’s well-being when they need it most.
Let’s discuss some key ways life insurance can safeguard your family’s future, how to choose the best life insurance for your situation, and the many ways First Mid can help you in your search.
The Role Life Insurance Plays in Financial Planning
Life insurance plays a crucial role in a comprehensive financial plan. Basically, it’s the ultimate safety net, and the tax-free death benefit can be a real lifesaver for your family. Here are six invaluable roles life insurance can play when it comes to financial planning:
1) Income Replacement
Most likely, your income plays a vital role in maintaining your family’s lifestyle. Life insurance can bridge the income gap, making sure your loved ones have the financial resources they need to continue living comfortably.
“One of the most common ways we see life insurance used is in the event of the tragic death of a main income provider,” shares Clay Dean, CEO of First Mid Insurance Group. “Imagine paying a mortgage you cannot afford while planning a funeral. Life insurance checks are usually issued quickly. By having that income replacement, it’s one less thing a family has to worry about during an already stressful time.”
2) Debt and Mortgage Repayment
Outstanding debts, such as mortgages, loans, or credit card balances, are another area that can burden your family in your absence. Your family can use the life insurance payout to help settle any outstanding debts. This protects your loved ones from inheriting debt and allows them to move forward with a clean financial slate.
3) Education Expenses
Every parent dreams of providing their children with the best education. Instead of letting a loss of income due to death derail those plans, your family can use the life insurance benefit to bring that dream to reality by funding their educational needs. That could be in the form of college tuition, vocational training, or specialized programs.
4) Funeral Expenses & Estate Planning
The costs associated with funeral arrangements and final expenses can be substantial. Life insurance can help alleviate this burden for your loved ones, allowing them to grieve without the added financial strain. Life insurance can also serve as a valuable component of estate planning. It provides liquidity to cover estate taxes and makes sure your assets are preserved for your beneficiaries.
5) Future Financial Security
Life insurance allows you to save for the future in some unique ways beyond receiving a death benefit. According to Dean, “There are policies that offer death benefits while also acting as extremely low-risk and stable savings vehicles. People can contribute to the policy monthly with a set budget and, depending on circumstances later in life, they may cash it out or even borrow against the policy with some great tax benefits.”
6) Business Continuity
If you’re a business owner, life insurance can secure the future of your business. It can provide funds for the smooth transition of ownership, enabling your business to thrive and ensuring your employees are taken care of in your absence.
Best Ways to Shop for Life Insurance
Now that you’ve got a great base of knowledge about the basics of life insurance, knowing where and how to shop for a policy is the best way to start your journey. Here are some of our top recommendations to help you in your search.
1) Know Where to Look
There are a multitude of life insurance providers out there. But grabbing the lowest price you can find online isn’t usually the best option because they often don’t factor in your unique situation. The best way to do that is to meet with an experienced insurance professional.
Consulting with a professional insurance agency like First Mid Insurance Group is a great place to start. They have access to multiple insurance carriers to quote and compare the best options for your budget and coverage needs. We also recommend you explore any employer-sponsored life insurance plans available or talk with your financial advisor about the best options.
2) Ask the Right Questions
Working with someone you can talk to directly also has advantages. They can help you define how much coverage you need, premium rates in your budget, desired policy terms, and if you need any special riders. Be sure to ask about details like premium payment options, what happens if you can’t pay, and how to adjust your policy if situations change, as these things can vary from policy to policy.
3) Request Multiple Quotes
Because life insurance has many options and moving parts, it’s best to get multiple life insurance quotes to help you get the best rates and coverage. Some policies may have built-in extras you don’t necessarily need, while others may be lacking even though the price is attractive. Getting multiple quotes allows you to do a side-by-side comparison and find the right option for you.
4) Look at Reviews
Before making a final decision, it’s a good idea to read reviews and seek recommendations from trusted sources. You’ll also want to rank the financial strength and reputation of the insurance companies when comparing options.
Getting Started with First Mid Insurance Group
Ready to build a stronger foundation for your family’s financial portfolio? First Mid Insurance Group has nearly 100 licensed agents and a network of highly rated insurance carriers ready to help! Plus, our agents care more about matching you with the right plan, policy limits, and benefits than making the next sale. That means you can be confident you are receiving the best options for you and your unique situation.
Life insurance options available through our network include guaranteed issued life, term, whole life, universal life, indexed universal life, long-term care, pre-paid funeral expense policies, life insurance for children, and more!
To get started, simply fill out this form with some basic information. The First Mid Insurance agent nearest you will reach out to you for more specific information, quotes, and options.
First Mid Insurance Group, Inc. is a wholly-owned subsidiary of First Mid Bancshares, Inc. and an affiliate of First Mid Bank & Trust, N.A. Insurance services are not deposits or obligations of the bank, are not insured by the FDIC or any governmental agency, and are not guaranteed.
