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Your Top 4 Financial Planning Questions Answered

Life insurance might not have crossed your mind before you had a child relying on you, but a growing family changes everything. Getting coverage is a simple way to make sure your family will be financially protected if something happens to you.

Life Insurance is really a love letter to your family. It's an essential part of planning for your loved ones future and ensures that they are taken care of in case something catastrophic happens to you.

I don’t just preach the importance of insurance, but I live it. My wife and I each have significant Term Life Insurance policies as well as Long Term Care Insurance. We did this so that our children would be cared for and not have to financially take care of us should one or both of us pass away. We have Whole Life Insurance and have used the Cash Value in the policy to help pay college tuition. We also have Long Term Care insurance so that if we need home care or facility care later in life, we won't put a financial burden on our children. There are many affordable ways to plan for the future using insurance and other dedicated investment tools from New York Life so that when you go to sleep at night you have one less thing to worry about.Term Life Insurance, Long Term Care Insurance and Whole Life Insurance for college planning (there are also many other ways to plan for your child’s college expenses like a 529 plan etc.) were a perfect fit for my family.

Are you wondering if it may be a good fit for your family too? Here are the top 4 questions I receive about family financial planning:

Q. What is Life Insurance anyways?

A. Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death of the insured person.

Q. Why do I even need life insurance…I get no personal benefit from it?

A. Life insurance is designed to provide families with financial security in the event of the death of a spouse or parent. Life insurance protection can help pay off mortgages, help provide a college education and help to fund retirement. In short, if others depend on your income for support, you should strongly consider life insurance.

Q. What is the difference between Term and Whole Life Insurance?

A. General speaking, a whole life insurance policy is guaranteed to remain in force for the insured's entire lifetime, provided required premiums are paid. These policies also accrue a cash value over the life of the policy which can be borrowed against the death benefit while the insured is still alive for anything including paying off a mortgage, college funding and retirement planning. Whole life insurance costs more in premiums, but it has the potential to be have a “life” benefit as well as a “death” benefit for the insured. Term life is exactly what it says it is. You pay premiums for a fixed term and if you pass away during that term, your beneficiary receives the full amount of benefit that you have in the policy. These terms can be as long as 20 years and are relatively inexpensive (a 30-year old female in good health can get a 20-year term policy for $1,000,000 for less than $55 per month) which allows for piece of mind for a certain period of time (usually 20 years) to allow your spouse or loved ones to live comfortably, and potentially pay off a mortgage or pay for college amongst other things.

Q. College is major expensive. How can I fund that now?

A. A Cal State or UC education can be upwards of $80,000 for 4 years right now. A private college education is $250,000 today and climbing every year faster than inflation. Luckily, there are many ways to help plan for college for a child. The younger you start, the better. There are 529 plans; however, you must use it for college or there is a penalty. You can fund an annuity or take care of two things with one policy by doing a Whole Life Insurance Policy where you insure yourself, spouse or your child and use the cash value to help fund the college experience while maintaining a life insurance policy for the future.

Scott Lasker

Agent

CA Insurance Lic. #0K52007

New York Life Insurance Company

801 N Brand Blvd,

Penthouse Suite.

Glendale. CA91203

818-625-5172 Cell

"I am passionately and purposely committed to an investment & insurance practice where my clients' needs are always priority one through holistic planning with a long-term view"