Thrivent: The Stages Of The Life Insurance Cycle

Life stages offer different challenges and rewards – whether you're starting out on your own, raising a family, focusing on your career or preparing for a rewarding retirement. However, while each stage may be unique, it's important to make sure your loved ones are cared for financially along the way.

Early career

Surprisingly, it's when you're young and at your healthiest that it's an ideal time to get your first life insurance contract. Your family and your financial future are counting on you to continue earning a living. Because you are young and healthy, a basic contract may be the most affordable depending on your needs. Life insurance will help ensure your family is cared for if you're not there.

Growing families (and income)

Young children bring joy to a family. But this idyllic picture can be easily shaken if an untimely death takes a toll on a family. Term life insurance can offer affordable coverage for you and your loved ones. It may be enhanced with optional riders to help ensure your protection stays adequate as your family grows and you advance your earning potential.

Legacy and retirement planning

As you enter your peak earning years and get closer to retirement, you will likely face more health risks. Converting from term coverage to permanent life insurance is one way to help ensure lifelong financial protection. Permanent insurance is guaranteed to be with you for as long as you live if you continue paying the premium and your provider stays in business. This is one of the many reasons you should look for an organization with a track record of financial strength and stability. These types of permanent insurance contracts also can help you start planning your legacy and may give you the option of including a favorite charity or cause as a beneficiary to help ensure your generosity lives on.

Peak Earning Years

Life insurance can be a valuable tool for protecting your assets, life and family. However, it may also be used for tax advantaged asset growth and a supplemental income stream in retirement. A financial professional can help you plan for your peak earning years and guide you in optimizing your coverage in order to minimize your overall tax burden while maximizing your level of protection.

Retirement

As you enter your later years, you are now ready to implement your retirement strategy. Continuing to have a solid plan in place to meet your needs is critical. These years are also among the best times to work on multigenerational planning and ensuring your children (and grandchildren) are taken care of in your absence.

Life insurance, like life itself, has many stages and options for you to consider. It is an invaluable tool for a family to help ensure that those you leave behind are financially protected and can also leverage additional benefits beyond basic death benefits.

This article was prepared by Thrivent Financial for use by local area representative Wealth Advisor Brad A. Nelson, CFP®, RICP®, CLTC®, FIC, and Financial Consultant Benjamin D. Weerts, FIC, CLTC®, RICP® and, at 32 NW 4th Street, Grand Rapids, MN 55744, 218-326-0068.