You have a household budget. You have a retirement savings plan. You’re even tucking some money away in an education savings account. You’ve crossed the financial finish line, right? Wrong. Unless you also have a plan for balancing your family budget in the case of a sudden loss of income, you’re only halfway there. Consider these facts:

• Life insurance per insured household in 1999 covered a modest 35.6 months of disposable income (LOMA Insurance Industry Outlook, 2003).
• The average monthly Social Security disability benefit for a disabled worker in 2001 was $789.40 (Social Security Disability Insurance: Some Facts, AARP Public Policy Institute, 2003).

"People are vulnerable in that most are underinsured," says Julie Hanson, senior risk products specialist at Thrivent Financial for Lutherans. "They think that a nice round number, say twice their income, is a lot of money. But if your family has to go on without you, in one to two years that money will be gone."

Your Thrivent Financial representative can help you calculate your family’s insurance needs based on current income, projected future earnings, a reasonable return on assets, and your financial goals.

"You need to look at human life value, or the value you provide to your loved ones over your lifetime," says Kim Anderson, Thrivent Financial risk products specialist. For example, she says, if you earn $50,000 a year and have 30 years to retirement, your monetary value to your family without inflation is $980,022. Taking inflation into account, she says, it’s closer to $1.4 million.

If you’re a young family just starting out, a term insurance contract, one that offers a death benefit and low premiums, may be your best bet. As you get older and as your income rises, look into permanent life insurance, which offers a guaranteed cash value along with a death benefit. Permanent contracts have higher premiums, but also offer more value since the cash value can grow and be tapped—as a loan or a withdrawal* potentially tax-free.

Disability Insurance
Along with life insurance, disability income insurance should be a top priority. Medical bills and lost income can be prolonged and expensive.

Most people are unaware that coverage offered through an employer likely won’t last as long as needed. People are also surprised when Social Security fails to cover their claim. Your Thrivent Financial representative can help you determine what level of coverage is right for your family.

*Loans and withdrawals will decrease your death benefit and the cash value available to pay insurance costs. Surrenders may generate an income tax liability and may be subject to a surrender charge. A significant taxable event can occur if a contract lapses with an outstanding loan. Loaned values may be credited at a lower rate than unloaned values.