Being young and starting a family is an exciting time - full of opportunity and anticipation. Unfortunately, young families are often the most vulnerable to life’s uncertainties. While many are in their peak earning years, they need to be prepared for potential unknowns.
Ensuring proper protection is important when designing a financial strategy to meet the needs of young families. While each financial strategy will be different, there are a few considerations every family should think about.
Life insurance and disability income insurance can be the foundation of a healthy financial strategy. A few companies are working to develop new offerings that allow new generations to access and leverage solutions more tailored to their lifestyles, incomes and families. Universal Life Insurance combines the affordability of term insurance with the premium flexibility and potential cash value growth of permanent insurance.
This gives young parents the option of purchasing a lifetime of coverage at a beginning price point that is generally very competitive with term insurance options. This permanent coverage has the potential to build cash value accumulation that can be used for other things, including an emergency savings fund.
Disability income insurance is another solution to consider so families are protecting their paychecks and future goals. New innovations offer options including “stay-at-home-spouse” benefits, allowing couples who have one person working inside the home to stay protected. This type of coverage can protect the invaluable contributions of stay-at-home spouses if they are ever in a situation where they are unable to work in the home.
Innovation and financial services aren’t frequently used in the same sentence. However, with the unique challenges and opportunities faced by young families, new options are appearing in the marketplace that are customized to meet the needs of a new generation.
This article was prepared by Thrivent Financial for use by Tri County Area representative John Lauer. He has an office at 3821 Main St. in Morgantown, PA and can also be reached at 610-286-5986.