How Life Insurance Can Improve Financial Wellness
Life insurance is traditionally seen as a means to provide financial protection for loved ones in the event of an untimely death. However, it can also play a significant role in enhancing your financial wellness.
By integrating Permanent Life Insurance (PLI) and Deferred Income Annuities (DIA) with an Individual Investment Plan (IIP), you can create a robust strategy that goes beyond conventional investment methods, offering stability and peace of mind during retirement.
The Importance of Financial Wellness
Financial wellness is more than just accumulating wealth; it encompasses managing your finances effectively to achieve long-term stability and security.
This involves budgeting, saving, investing wisely, and preparing for unforeseen events. Life insurance, particularly PLI, can be critical to this holistic approach, providing security and flexibility.
According to a recent Federal Reserve report, Americans have some work to do: 73 percent consider are doing okay financially. In comparison, 19 percent say they are “just getting by” or “finding it difficult to get by.”
How PLI and DIA Enhance Financial Wellness
Integrating PLI and DIA with your IIP can provide several advantages:
- Liquidity During Market Volatility: The cash value of PLI can be accessed through surrenders or loans, providing a source of income during market downturns. This allows you to avoid selling traditional investments at a loss, preserving your portfolio’s value.
- Guaranteed Income: DIAs provide a guaranteed income stream in retirement, reducing reliance on market-based investments. This stability can help cover essential expenses, even during economic downturns.
- Diversification: Combining PLI and DIA with your IIP diversifies your financial strategy, spreading risk across different types of assets. This diversification can lead to a more resilient retirement plan.
As Rafe Klein, Senior Vice President Investments at David Lerner Associates, explains, “Incorporating life insurance products into your retirement strategy can significantly enhance financial stability. By understanding and utilizing these tools, you can create a more comprehensive and secure financial plan.”
Financial Literacy: The Key to Success
Financial literacy is the cornerstone of financial wellness. Understanding the various financial tools available, including life insurance, empowers you to make informed decisions that align with your long-term goals. Investment counselors are dedicated to educating clients about the benefits and nuances of integrating PLI and DIA into their financial plans.
Taking the Next Steps
Achieving financial wellness requires careful planning and informed decision-making. Integrating life insurance products like PLI and DIA into your retirement strategy can add protection and stability to your financial plan. Consulting with an investment counselor can help you explore how these tools can be tailored to your needs and goals.
Life insurance can significantly improve financial wellness by providing liquidity, stability, and diversification in your retirement plan. With the guidance of an investment counselor, you can enhance your financial literacy and make decisions that support long-term financial stability.
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.