The foundation of the financial pyramid is protection.  Protection for individuals is achieved by having the proper types of insurance, documents, and orders in place.  Life insurance, health insurance, disability insurance, wills, trusts, and power of attorney to name a few.

Why is life insurance an essential part of the financial pyramid when so many Americans don’t have it or are not properly covered?  Life insurance is one of those things people don’t want to think about because it takes their minds to death almost instantly.  Yet it is a necessity, our greatest asset is ourselves, just as we protect our homes and cars.  Well we actually do not have a choice when financing these purchases as the lender requires insurance.  If a lender requires insurance on your life and car, how much more valuable are you?  Is your life not worth protecting? Is your family not worth being provided for even in your absence?

Unfortunately life insurance on your job is more than likely not enough and also what happens once you’re let go, quit or retire?  Having your own separate life insurance policy is the ideal situation and you want to have enough coverage for your insurable need(s) based on affordability.

There are different types of life insurance there is term insurance as well as permanent insurance (most call this whole life).  There are different types of whole life insurance.  Term insurance is chosen by many because it is affordable, the downside to term is that it expires within 10 to 30 years of getting covered.  Permanent insurance premiums are significantly higher than term premiums when comparing apples to apples, example the premium for a term life insurance policy with a death benefit of one-million dollars for an average 38-year-old woman may only be $50/month. That same type of coverage with a permanent policy may be $1,000/month.  Nevertheless term and permanent policies have their place in individuals’ financial plans.  There isn’t a one size fits all approach so don’t let anyone tell or sell you differently.  Permanent policies include something major surrender values or their cash bucket.  This “bucket” grows compound interest at rates currently beating inflation.

A well-trained life insurance professional will provide a consultation that is education and information as well as assists with determining the clients’ insurable needs.  The goal is to meet your insurable need while focusing on your affordability.

Other protections to consider especially if you are a small business owner or self-employed is health insurance, disability insurance and as mentioned previous wills, trusts and more.