(ARA) – Are you a gambler? Even if you’ve never visited a casino, bought a lottery ticket or put money on the ponies, you just may be in danger of making a bet you are certain to lose.
Every day, smart, caring, otherwise responsible people “bet” that they will live to see tomorrow – without providing financially for their loved ones in the event of their death. In most cases, they win. But, as the local obituary pages attest, death eventually overcomes everyone.
Roughly 35 million U.S. households have no life insurance coverage, according to an August study by LIMRA, a worldwide research and consulting organization serving the life insurance industry. The study found that among households with children under age 18, four in 10 say they would have immediate trouble meeting everyday living expenses if the family’s primary breadwinner died today. Another three in 10 would have trouble keeping up with expenses after several months.
“We sometimes overlook our true priorities,” says Bruce Fear, vice president of protection products and solutions for Thrivent Financial for Lutherans, a Fortune 500 financial services organization. “Leaving our loved ones financially unprotected in the event of our death just isn’t responsible.”
Having appropriate life insurance coverage in place offers benefits that few other products can. These might include:
* Covering a loved one’s final expenses.
* Paying off credit card bills, outstanding loans or even one’s mortgage.
* Generating income for surviving family members.
* Funding long-range financial goals like a college education for the kids.
* Protecting a spouse against sharp reductions in future retirement income (e.g., pension or Social Security payments).
* Equitably passing a business or significant assets to family members.
* Giving a grieving spouse the time to emotionally heal before joining or rejoining the workforce.
But what if you find yourself currently without life insurance or feel you may not have enough life insurance to provide for your loved one’s needs? These tips from Thrivent Financial may help:
* Learn the basics. Do your homework. The nonprofit Life and Health Insurance Foundation for Education (LifeHappens.org) offers consumer education resources to help you understand the key facts around the why and what of life insurance protection.
* Determine how much you need. Many free online life insurance calculators offer guidance around the amount of life insurance you may need. However, every family’s circumstances are unique. A financial professional can also assist you in determining the appropriate amount of coverage you need.
* Select the type of insurance that meets your needs and budget. Insurance comes to two basic forms: term (providing protection for a specific period of time and generally paying a benefit only if you die during the “term”) and permanent (providing lifelong protection and the ability to accumulate cash value on an income tax-deferred basis; unlike term insurance, permanent insurance remains in force for as long as you continue to pay your premiums). Product features and costs for both types of life insurance vary greatly.
* Select a reputable company. Independent insurance analysts (like A.M. Best, Fitch, Moody’s) may issue a “rating” for a life insurer’s financial strength, claims-paying ability and/or general capacity to meet its financial obligations. Other factors to be considered include the company’s size and record of customer service.
“Many people consider life insurance the true foundation for their other financial goals and hopes,” says Fear. “It can offer families a touch of financial stability at a time when everything else in their lives is being shaken.”
There are some gambles that may be appropriate. Leaving loved ones financially unprotected from an untimely death isn’t among them.
• NOT A DEPOSIT • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT GUARANTEED BY THRIVENT FINANCIAL BANK • MAY LOSE VALUE
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Insurance products issued or offered by Thrivent Financial for Lutherans, Appleton, WI. Not all products are available in all states. Thrivent Financial representatives are licensed insurance agents of Thrivent Financial.
For additional important disclosure information, please visit thrivent.com/disclosures
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