There is nothing more valuable to your family’s financial security than yourself and your ability to produce an income.
When your ability to produce an income is eliminated by death, disability, and/or retirement, without proper planning your family will not only have lost immediate income, but quite possibly financial security for years to come.
Financial planning for these events is most effectively accomplished using life insurance, disability insurance, long term care insurance, and retirement insurance (annuity) products. These products are the most important financial planning products available because they protect your income from being eliminated, by guaranteeing a brand new income source at the precise time your ability to produce an income is lost. While often referred to simply as “Insurance Planning”, this term could be a disservice to the general public as it may not properly emphasize the critical purpose of this aspect of financial planning. Perhaps a better term for this type of planning is “Income Protection Planning”, for that is the real purpose of it.
While not as exciting as planning for “income growth” using stocks, bonds, mutual funds, and other investment instruments, income protection planning should take precedence in any financial plan. It is preparing for events that, when they occur, can have an absolutely devastating effect on family finances – possibly resulting in financial (and family) problems for generations to come. Once again, products such as life insurance, disability insurance, long term care insurance, and annuities, are still the most effective way to guarantee that an income continues to come to your family when your ability to produce an income stops.
Do you have an income protection plan?