April is Financial Literacy Month – Step 1 of Building A Solid Financial Foundation
Written by Chantay Moore
The first step of establishing any financial plan is to have proper protection. Protection refers to insurance; life insurance to be exact. Why life insurance first? Well, for most families, losing a loved one, especially a breadwinner, can cause a financial strain to their family that can often turn devastating. For families that have limited income and lots of responsibilities like children or debts, having proper protection is simply not optional.
One of the biggest misconceptions I’ve heard about life insurance is that it costs too much. There are two types of life insurance, term and permanent. Term life insurance is the most affordable and will provide the greatest amount of coverage for the lowest cost. Permanent life insurance is great for those who want coverage for the duration of their life with the opportunity to accumulate cash value inside their policy and possibly have other living benefits like long term care coverage. With so many types of insurance policies available and all having different cost structures, it makes sense to shop around and find the best plan to suit your family’s needs. Lastly, insurance costs are generally associated with one’s age, health, and lifestyle. And don’t think just because you may have some health issues that you can’t be covered. That’s not true either. There are some insurance companies that will cover you regardless of any underlying medical diagnosis. At the end of the day, it never hurts to speak with an experienced life insurance professional who can review all options available to you for your budget. Talk with one of our licensed financial professionals who can help you with your insurance needs: https://www.nafls.com/financial-advising-services/