Ep 15: The Strategy Behind Life Insurance

November 18, 2021

What is life insurance to you? To some, it causes them to cringe or want to change the subject. Others see it as a way to pay off debt or protect your family. It can also be a way to pass on wealth. On today’s show, we focus on educating about life insurance so you know your options and can make a wise decision on it.

Life insurance has some good benefits to it that are worth considering as a part of your financial plan. There are even living benefits that you may want to tap into. Who really needs life insurance and how much should you have? Alan shares a story about a client who did the math on a life insurance policy to see if it was worth getting it to benefit her heirs. This strategy accomplished her goal of passing money onto her kids in a tax-efficient manner.

There are a lot of different risks that life insurance can protect you against. Are you protecting your young family from losing their house if you pass? Are you protecting against the market and risk? How can life insurance protect against the risk of long-term care expenses?

Consider the strategic uses of life insurance that might not be obvious. Try to be open as you work through your financial plan, incorporating different financial tools. Life insurance is used for more than just young families. It won’t be right for everybody, but you may be surprised by the possibilities that life insurance can provide.

Listen to the entire episode or skip ahead using the timestamps below.

0:35 – Why does talking about life insurance make people cringe?

4:04 – How do you know if you need life insurance?

8:01 – Life insurance protects against risk.

10:20 – How can life insurance provide tax-free income?


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