Oct 13, 201206:17 AMIn Her View

Business Insights & Inspiration

Do you have a FINANCIAL SAFETY NET protecting your future?

Do you have a FINANCIAL SAFETY NET protecting your future?

 

It is not surprising that statistics indicate women outlive their husbands, that they receive lower social security payments, lower pensions and earn less money. But what is surprising is the large number of single women (either widowed or divorced) living in poverty.

 

When a man experiences the loss of his wife, typically there is minimal financial impact to his lifestyle. He keeps the same pension payments and his income continues as before. When a wife loses a husband, her pension payments, social security payments and income can be reduced significantly. In addition, her mortgage payment, car payments and living expenses continue as before. This situation becomes more extreme when this life-changing event happens early in life to a young family, especially if there are college expenses or the costs of raising young children involved.  If you experience the loss of a spouse, the last thing on your mind should be your finances. It can be very reassuring when your financial adviser shows up at your door a week or so later with a check capable of paying off your mortgage, tax free. Or it could just be a sum of money to provide you with a financial safety net.

So, how can women protect themselves from these devastating life events? The answer is easier that you think: life insurance. When you insure your husband’s life, if something happens to him, the insurance will replace his income. This may sound like a basic concept but many families never plan for the worst-case scenario. Every homeowner buys insurance for his or her home, yet the odds of it burning down are remote.  People buy health insurance to protect against catastrophic illness, so why not buy life insurance to protect your financial future?

Buying life insurance is not exactly a fun thing to do on a Friday night!  It can seem confusing, boring and even morbid. But having a financial safety net could make the difference between living your golden years just scraping by or living the life you worked so hard to enjoy.

There are different types of insurance; some cover you over your lifetime, others for a limited time period. These are referred to as permanent versus term insurance. Look at term insurance versus

permanent insurance as you would look at renting a home versus owninga home. Generally, term insurance covers a period of 10 years or 20 years, but it’s like renting. Once the term expires, it is over. As expected, term insurance is cheaper than permanent insurance. It is appropriate for a family just starting out because it is quite affordable. Permanent insurance comes in many variations. As expected, it lasts your lifetime and can build cash value. Most importantly, it is used as protection and as anestate planning tool.

Your life insurance choice is only one component of your overall financial strategy. Call me today to discuss your financial strategy and to put your safety net in place. Pursuing life insurance could be the most important task you do today. 

 

 

Susan Finefrock is a Certified Financial Planner™ and investment advisor focusing on developing comprehensive financial planning, wealth preservation and retirement accumulation strategies. Comprehensive financial planning includes estate, trust, tax, college and retirement planning. Susan weaves a financial education philosophy into her client interactions, ensuring that each client has pertinent information to make informed decisions about his or her financial future.

How to contact Susan Finefrock:  (614) 942-1305 | sfinefrock@woodburyfinancial.net | www.wmsllc.net

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