Ken Morris: It's good to have life insurance no matter when you die

It's difficult to fathom that we're already in the fourth quarter. September came and went in the blink of an eye. I intended to remind my readers last month that September was Life Insurance Awareness Month. But, since it's so important, better late than never.

It's true, insurance companies aren't the most well like institutions, but life insurance planning is an important aspect of your financial plan. It may be an uncomfortable topic, but it needs to be addressed.

Sadly, COVID has reminded everybody that nobody is invincible, and it's taken far too many people before their time. I doubt anyone wakes up thinking "This is the day I go." But you never know. And the reality is that financial planning includes preparing for the unexpected.

For example, what happens if you never return home again? Will your family be able to get by without you or your paycheck? Without a significant nest egg, how will the kids get educated? Will your spouse be able to maintain his or her lifestyle? Will you be forced to sell assets in order to pay estate taxes?

These are just some of the reasons you may need real life insurance through a reputable insurance company. With tongue in cheek, I like to say that GoFundMe is not a viable alternative to insurance company. It would be like putting a Band-Aid on a wound that required major surgery. It might make your friends feel better for donating, but long term it's not likely to be adequate.

I strongly suggest that readers review their life insurance needs with their advisor. And be aware that life insurance companies not only offer traditional life insurance policies, but also many so-called hybrid life policies that include elements of long-term care.

Okay, so maybe shopping for life insurance is time consuming and complex, but that's because understanding the details is very important. But in order to implement and complete the task, it's a necessary process.

Speaking of life insurance companies, the iconic rock group the Rolling Stones just began their much-anticipated tour. It was initially delayed because of Mick Jagger's heart issue. Then, as with so many other things, the tour was put on hold because of Covid. Now, the show is proceeding, even though their long-time drummer, Charlie Watts, recently passed.

Why would I bring up the Rolling Stones in a financial column about life insurance? Because there's a flip side to dying too soon. And that happens to be living too long. The Rolling Stones are a truly remarkable example of longevity.

A fear of many retirees is running out of money. One way to get a reliable stream of lifetime income is through a life insurance company. It just happens that the sole sponsor of the Rolling Stones tour is The Alliance for Lifetime Income. The Alliance is a non-profit educational organization that helps consumers with retirement income strategies.

The funding for the Alliance comes from a group of 24 leading financial services organizations, including some of the nation's major life insurance companies.

From dying too soon to living too long, the much criticized and often maligned life insurance companies have a variety of solutions to address your concerns. Naturally, they can't solve every problem, but they can certainly provide peace of mind.

Securities offered through LPL Financial, Member FINRA/SIPC. E-mail your questions to [email protected]. Ken is a Registered Representative of LPL Financial. Ken is Vice-President of the Society for Lifetime Planning. All opinions expressed are those of Ken Morris. LPL and Society for Lifetime Planning are independent companies. Investing involves risk including loss of principal. No strategy assures success or protects against loss.