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Be Wise With Money
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Protecting Your Finances & Your Future
June 24, 2016
You did it! You've done your research, brainstormed your goals, made your decisions and have taken action to develop a solid financial strategy for you and your family. Perhaps you're implementing special budgeting, spending, savings and investment strategies to make your plan a reality. You're definitely in the game.
However, in all of this planning and doing, have you considered how you're protecting your goals? Life can throw us curve balls that can upset even the best-set game plan. Having strategies in place to help protect your assets is a key part of solid financial preparation.
Here are a few ways to help ensure your game plan protects your assets:
One of the most common ways people protect a financial strategy is through life insurance. In the event of a premature death, it can help ease the financial burden for those left behind.
Not only can it help your family maintain the same standard of living, but it can help pay a mortgage and other debt and help fund your children's education expenses.
You may want to consider a cash value, or a permanent, life insurance contract which can provide protection and a potential way to save. These types of contracts provide benefits just like term insurance upon a premature death, but they also can offer a way to accumulate income-tax free cash value.1
You may be able to borrow against those funds to provide supplemental income in retirement or help with unexpected expenses. Permanent life insurance could be the extra safety net you need.2
Disability income insurance
Another tactic for a good defense is disability insurance. It's perhaps a less commonly purchased type of insurance, though often more necessary. If you're unable to work, disability income insurance can help provide an income stream for you and your family.
The chance of a disability is higher than you may think. The majority of long-term work absences are caused by injuries or illnesses such as accidents, surgeries or other medical conditions.
Imagine injuries from a car accident leave you on the sideline and out of work for several months. Or maybe a back injury or pain prevents you from doing your job. Disability insurance can help protect you and your family.
If you have children, you may want to consider a juvenile insurance policy. For a relatively small amount, parents can buy this type of insurance to protect their children no matter what happens in their future health-wise.
Imagine your child is diagnosed with an ongoing health problem such as diabetes. A preexisting condition like that can make it difficult and expensive to purchase a new life insurance contract down the road.
With juvenile insurance, you're giving your child insurance options for when they become adults, thus protecting them, their future family and the financial goals you've worked so hard to achieve.
IRAs & 401(k)s
A note on retirement savings: Counting on retirement accounts for unanticipated changes in your financial strategy should be a last resort. A distribution or loan could result in fees, interest charges, penalties and taxes.
Take the next step
Evaluate your defense. Get started by determining how much insurance coverage you may need by using our helpful calculators:
Make your offensive move today. Meet with a Thrivent Financial representative to protect your financial game plan.
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This is a solicitation for insurance.
A Thrivent Financial representative may contact you. This contract has exclusions, limitations, reductions of benefits and terms under which the contract may be continued in force or discontinued. For costs and complete details of coverage, contact your Thrivent Financial representative.
THRIVENT FINANCIAL IS THE MARKETING NAME FOR THRIVENT FINANCIAL FOR LUTHERANS.
1 Thrivent Financial representatives and employees cannot provide legal, accounting, or tax advice or services. Work with your Thrivent Financial representative, and as appropriate, your attorney and/or tax professional for additional information.
2 Loans and surrenders will decrease the death proceeds and the value available to pay insurance costs which may cause the contract to terminate without value. Surrenders may generate an income tax liability and charges may apply. A significant taxable event can occur if a contract terminates with outstanding debt. Contact your tax advisor for further details. Loaned values may accumulate at a lower rate than unloaned values.