Most American families no longer fit the traditional pattern of mother and father, with two children and a white picket fence. According the U.S. Census Bureau, there are more blended families than traditional families. It's very likely your family also includes stepchildren, step-parents, your sibling's stepchildren, new children with a new spouse, and more! It makes for fun and interesting family reunions, but what does it mean in terms of life insurance and estate planning?
It means it's more important than ever to make sure every family member is protected.
Step 1: Insure Your Love with Life Insurance
Life insurance is a valuable tool for making sure the people you love are protected, no matter where they go or what they do. Divorces, moves, remarriages: all of these things affect your child's financial stability. But losing a parent? That's by far the worst thing that could happen. When you insure yourself, you're doing the right thing to ensure your child's future is financially secure, no matter what happens to either parent.
But buying a policy is only the first step. Once you're covered, you have to make sure your beneficiary list is always up-to-date. Your beneficiaries are the people (or person) you choose to receive the policy's death benefit after you pass away. As your family changes, there may be people you want to add or people to remove. It's up to you to keep that list updated so the insurance company knows who to pay. It's all part of being a responsible parent...and a properly insured one!
Step 2: Plan for Longevity with an Annuity
Blended families aren't happening just because of a higher divorce rate. They're also happening because people are living longer. More seniors are marrying again after a spouse dies, which gives them a whole new support system to rely on as they age. But does it (and should it) affect your retirement planning?
Because it's impossible to pinpoint how long you or your spouse will live, there's only one proven way to be sure your retirement income lasts as long as you do: annuities. Recommended by the Government Accountability Office, they're a rock-solid way for seniors to invest at least a portion of their retirement savings in return for guaranteed lifetime income.
When you buy an annuity, you're essentially buying the guarantee that your annuity will pay you every month until you pass away. You fund the annuity either with one lump sum (from a pension or 401k payout) or you pay into it over time. Either way, your money earns interest. Every month, a percentage of that money comes back to you in a check. Sometimes it's enough to support you entirely; other times, it's a helpful boost over and above what Social Security pays. It's all managed by your insurance provider, so you never have to worry about budgeting how much to withdraw (the way you do with a 401k). You're free to focus on more important things...like family and fun!
I can help you protect your loved ones and your retirement income.