In the military, you learn and train to be prepared for anything. So, in your daily life, you probably already take many actions to ensure your loved ones’ safety and security, from selecting the best car seat for your newborn to ensuring you have appropriate healthcare coverage. You may also have started your retirement planning and have been working to build your nest egg to make sure the future is taken care of.
But what about a more straightforward way to build wealth and provide financial protection for future generations of your family? Life insurance is a way to achieve that, and it’s something you should consider including in your financial planning.
In all the ways we protect our families, life insurance might be the last thing we think of putting on the list — or we forget about it altogether. This is a problem if you are trying to ensure the next generation of your family will be financially looked after in the years ahead. In fact, purchasing a life insurance policy now is one of the best ways to protect your family while also helping to build wealth for the future.
Life insurance stands as a cornerstone of generational wealth building, offering far more than just death benefit protection. When strategically implemented, it can become a dynamic financial tool that will create, preserve, and transfer wealth across generations while also providing benefits to current policyholders.
However, studies indicate that many people who don’t have life insurance perceive it to be unaffordable or too complex. It doesn’t have to be. The most popular types of life insurance are actually easy to understand and can be quite affordable. For the protection it provides and the ability to look after your future generations, life insurance is considerably less expensive than homeowner’s or automobile insurance!
Let’s Break It Down
There are two basic types of life insurance: term insurance and permanent insurance. Term insurance generally has lower premiums and lasts a defined period of time. It’s used to replace your lost income, pay off mortgages and other debt, and ensure your family doesn’t suffer significant financial burdens due to your passing. Permanent insurance has higher premiums because it provides protection for your entire life and is guaranteed to pay out when you die. However, while you’re living, it builds cash value that you can use if you ever need it. Most military families use a combination of permanent and term insurance to fully protect their financial future.
How Much Do You Need?
There are many ways to determine the amount you need, including using our life insurance calculator. This is one reason why some people think life insurance is too complicated. But to keep it simple, life insurance is there to help protect your loved ones, which means you’ll want enough coverage to provide for their needs if you’re not around to do so.
Keep It Simple and Affordable
The best time to obtain life insurance is the moment you realize there is a need to protect your loved ones. Generally speaking, the younger you are when you get your policy, the better. Here are three main reasons why:
- Life insurance costs less when you are younger.
- You tend to be healthier when you are young.
- Protecting your loved ones during or before your highest earning years will allow you to obtain the most insurance for the lowest cost.
What’s Next?
Once you decide on the amount of insurance you need, determine how it fits into your financial planning. Get a quote now, or contact an AAFMAA Membership Coordinator who can help you match your family’s needs to the right life insurance policy, simply and affordably. Call 877-398-2263 to get started.
This article was originally published December 13, 2021.