Build and protect your precious moments
What's your favorite memory? Family vacations at the ocean? Stargazing on a summer night with your parents or siblings? Sunday pot roast dinners with extended family?
Whatever your particular memories are, special moments shared with family members are the most treasured possessions.
With life insurance, your family can continue to experience simple pleasures and major milestones — even after you're gone. Life insurance can help you leave a legacy of love and financial security, helping to provide more assurance, more protection and more from your investments.
Assurance where there is uncertainty
Americans are apprehensive about the future because of changing external risk factors. Concerns about market volatility are compounded by uncertainties regarding longevity risk, inflation, health-related expenses, and taxes, which could stand in the way of achieving financial goals and of leaving a legacy for loved ones.
However, there is a strategy to ensure your loved ones will always be provided for financially. Life insurance can help. The death benefit from life insurance can help pay off debt, replace lost income, pay off an outstanding mortgage, or help cover family care and medical expenses, and more.
Through your hard work, you've built a life for those you care about. That legacy deserves to be protected from the many risks that could affect your plans. These risks may include:
- Tax burdens. Without proper planning, retirement savings can be depleted just to pay estate taxes. A life insurance plan's death benefit is usually paid income tax-free and can be structured so it's not subject to estate taxes. The death benefit can provide for loved ones, a business or charity without eroding your retirement savings.
- No business continuation or protection plan. It's typically not ideal for family members who are not involved in the business to have to step into the day-to-day operations — especially under difficult situations. An insurance death benefit can fund a buy-sell agreement to protect the business from having to be sold and would ensure it continues the way you would have chosen. It can also fund a key person plan.
- Longevity. Your spouse may outlive you by many years and life insurance can help ensure that they are protected even after you are gone. For a 65-year-old couple a female member has a 50% chance living to 90 and male member has a 38% chance.1 Life insurance can help ensure they are supported even after you are gone.
- Healthcare expenses. Your family may not be able to cover major healthcare expenses without your income stream or healthcare benefits. Basic health coverage can be a costly expense that a life insurance death benefit can help cover. It may also help cover medical expenses for an older relative. There are also life insurance riders that give you a supplemental source of tax-advantaged funds to use for any purpose you choose if you develop a permanent or chronic illness.
- Parenting costs. Today, average annual college tuition is more than $32,000 for a private four-year institution and that doesn't include costs like room and board.2 The average yearly cost for center-based infant care is higher than a year's tuition and fees at a four-year public college.3 With insurance, you can help ensure that college education or other parenting costs for your children or grandchildren is still within reach.
- Outstanding mortgage. Making monthly mortgage payments over a number of years on a primary residence or vacation home without your income may be impossible for your family. A life insurance death benefit can be used to pay off outstanding mortgages, so your family can continue to stay in their home and not be forced to sell.
Talk to your advisor today about how life insurance from Lincoln Financial can help you protect your loved ones, or for more information, view our life insurance products.
1Life expectancy based on the 2008 Valuation Basic Table (2008 VBT), which is published by the Society of Actuaries and appropriate for someone recently underwritten for life insurance. This Table varies by gender and smoker status, but is not tailored to specific underwriting classes. Mortality tables such as 2008 VBT provide a basis for various financial calculations but do not predict any individual's future life span. While these statistics are a useful reference tool, keep in mind longevity is affected by many factors (lifestyle, occupation, health problems, family history of longevity, etc.).
2"Trends in College Pricing 2015." The College Board. Accessed September 12, 2016. www.collegeboard.com.
3"Parents and the High Price of Child Care: 2015 Report." ChildCare Aware of America. Accessed September 12, 2016. http://usa.childcareaware.org/wp-content/uploads/2016/05/Parents-and-the-High-Cost-of-Child-Care-2015-FINAL.pdf