vital questions families should consider

Recent economic turmoil has forced many families to take a closer look at their finances and alter their spending habits. Though it’s easy to focus on more immediate needs during times like these, it’s important not to lose sight of long-term financial needs, including life insurance. Every family has different financial protection needs based on their unique circumstances, so it’s important to talk openly about what’s at stake and how you would manage without the income of a family breadwinner. Considering the economic impact of such a loss, it makes sense to engage your family in a candid discussion about your financial future – and your plans to protect it.

The following questions could be vital in helping your family take control of its destiny. There’s no time like now to plan for tomorrow.

What sources of income does your family have?
Even if you are a two-income household, the death of one wage earner can drastically affect your family’s life. Sufficient life insurance can help the family to stay in the home and community that’s familiar.

Have you had any recent life changes?
Milestones such as marriage, divorce, job promotion or buying a home often result in changes to a household’s income and financial obligations. If your family has recently been through one of these life changes, it’s important to review your life insurance coverage to make sure that you have the right level of protection.

Are you self-employed or a small-business owner?
In addition to protecting your business with appropriate life insurance coverage on yourself and other owners, you may have retirement needs that qualified plans like 401(k)s and profit sharing can’t meet because of contribution limits and anti-discrimination rules. Life insurance can also be used for business succession planning and rewarding and retaining key employees.

Do you have any estate planning needs?
Life insurance can be an effective way to pass wealth to loved ones or favorite groups. While you should consult a legal or tax adviser for advice on your specific situation, using life insurance to transfer wealth to people or charities can be a tax-efficient way to maximize your gift.

Has the market downturn impacted your retirement savings?
If so, you should consider how an unexpected death could affect your family’s ability to rebuild its retirement nest egg. Life insurance can help you fill this gap and stay on track to achieve your retirement goals.

Do you need help from an insurance professional?
Deciding which type of life insurance coverage is right for your family can be a complicated process. If you need help, don’t hesitate to turn to an insurance professional who can explain the different options and help you make an informed decision.