We all know someone who has become severely ill or died prematurely, but many think it won’t happen to them. Planning for the future involves being prepared in case we encounter the worst. KL Advisory Group will fit you with insurance coverage that best suits your family’s lifestyle as well as your retirement plans.
Karen was a 38 year old office manager, working for a small manufacturing company. She was a single mother caring for her 14 year old son, Steven.
Two years prior to her passing, she had divorced from her husband, leaving the mortgage and Steven’s care as her main responsibilities.
Shortly after the divorce, she became aware of her financial vulnerability. While she was able to make ends meet, she felt unprotected because her risk planning wasn’t set up to take care of her or Steven. Without family nearby, and with most of her savings depleted from the divorce, she decided to see what her financial planning options were.
She took out a $500,000 life insurance policy as well as an income protection policy in case something ever happened that rendered her unable to work. The two policies plus the health benefits provided by her employer added a layer of protection she knew she needed.
Two years later, Karen was rushed to the hospital after falling down a flight of stairs. She lost consciousness and slipped into a coma, passing away three days later. She was only 40 years old when she died.
A small part of the insurance funds were used to cover the cost of her funeral, with the rest placed in trust for Steven, to be remitted to him when he turns 18.
Steven always wanted to become a doctor. Because of Karen’s prudent planning, the money will now be there to help him accomplish his dream.
Life insurance policies offer tax-sheltering opportunities that are unique to the financial planning space.
Some forms of life insurance come with an investment portion, where the death benefit and cash values grow within the policy. For many people, this is a great way to grow and preserve wealth.
You don’t need to be a millionaire to benefit from the tax and investment opportunities that life insurance affords you. If you’re planning for your future, and especially if you have a family, life insurance can be a powerful risk management tool.