New Year’s Financial Resolutions: Starting With Life Insurance
December 17, 2024
With the holiday season upon us and the new year quickly approaching, you’ve likely been contemplating gifts you can buy for others and resolutions you can make for yourself. A robust life insurance policy checks both boxes. In addition to serving as a meaningful gift for yourself and your loved ones, life insurance can also be part of a strategic New Year’s resolution that will allow you to prioritize and strengthen your financial health and stability. At 1891 Financial Life, we suggest making a life insurance policy the cornerstone of your financial planning, and here’s why.
Why Include Life Insurance in Your Financial Resolutions?
A comprehensive life insurance policy benefits your loved ones by ensuring they have the funds they need to pay for living expenses, educational pursuits, and planned as well as unforeseen debts.
In addition to providing security for loved ones, life insurance can serve as a tool to transfer wealth and plan your estate. When you include life insurance in your financial resolutions, you make it possible to achieve your financial goals while simultaneously establishing your legacy.
Assessing Your Life Insurance Needs
You can determine how much coverage you need by subtracting your liquid assets from a list of your financial obligations. Our Life Insurance Calculator can give you an idea of how much coverage you’ll need to protect your loved ones.
However, the best and easiest way to assess your life insurance needs is to work closely with an insurance professional. We can help evaluate your financial situation, identify any gaps to address, and provide you with personalized policy recommendations.
Choosing the Right Type of Life Insurance
It’s crucial to choose the type of life insurance that best aligns with your financial objectives. Perhaps you’ll invest in term life insurance, which provides coverage for a specific period of time (typically 10 to 30 years), or maybe you’ll explore permanent life insurance, which includes whole life and universal life options that offer lifelong coverage.
Term life insurance offers two notable benefits: affordability and an income-tax-free death benefit delivered to the beneficiary upon the policyholder's death. This type of policy tends to be ideal for those who want affordable coverage for a specific period of time.
Permanent life insurance, on the other hand, is generally more expensive, but it provides lifelong coverage and offers a cash-value component. The cash value of whole or universal life insurance accumulates over time and on a tax-deferred basis.
Making Life Insurance Affordable
Don’t avoid purchasing a life insurance policy because you’re concerned that it could be too expensive. There are many ways to make life insurance affordable.
You can, for instance, incorporate your life insurance premiums into your annual budget, which would help you feel confident that you’re not compromising your other financial goals throughout the year. Other effective ways to reduce the costs of life insurance involve choosing annual payment plans and adjusting your coverage amounts and terms.
Implementing Your Plan
By purchasing your life insurance policy now, you can take advantage of lower premiums and begin your financial planning in conjunction with the start of the new year. At 1891 Financial Life, we can work alongside you to implement your plan and tailor your chosen life insurance policy so it complements your overall financial strategy.
Happy New Year!
The holiday season gives us all an opportunity to reflect on the importance of family, the joy of togetherness, and the wisdom and satisfaction of planning ahead. As you consider the financial-themed New Year’s resolutions you’d like to make, we hope you’ll plan to invest in life insurance. We’re committed to helping you make well-informed decisions, so contact us today to schedule a meeting with one of our knowledgeable and friendly life insurance agents or financial planners.
From all of us at 1891 Financial Life, we wish you and yours a happy, healthy, and fulfilling new year, and we look forward to working with you in 2025 and beyond!
About 1891 Financial Life
Our culture is about looking out — for you, for others, for family, for the community. That is how we go “Beyond Life Insurance.”
At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. In 2023, 1891 Financial Life was listed by Forbes as one of "The World's Best Life Insurance Companies."
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.