Most people have insurance for their home and car and have at least considered getting life insurance to protect their loved ones from the financial consequences of their death. However, many people haven’t thought at all about protecting their ability to earn a living.
Many retirees worry about where they will live when they get older and invest significant thought into considering different living arrangements. It’s a special circumstance with a lot of variables to consider: financial concerns, caregiving needs, family relationships, interests, and location. In an effort to remain independent and be close to family, an increasing number of retirees are considering multi-generational living arrangements.
No one likes thinking about their own death and decisions about life insurance can be very complex. Every person’s situation is different and there are a lot of variables that must be considered to determine the proper type and amount of coverage. Unfortunately, it’s common for many people to make uninformed decisions based on prevailing beliefs about how insurance works. Here are four dangerous (and common) life insurance myths, busted:
Home loans frequently make up significant amounts of household debt, and reducing as much debt as possible before entering retirement can seem like a good idea. A 2013 survey found that 40% of Americans age 55 and older believe that paying off their mortgage was the smartest financial move they ever made.[i] There’s also a certain peace of mind that can come from having one less bill to pay in your later years. However,
Risk is part of everyday life. From the moment you get up in the morning to the moment you go to bed, you are exposed to many different kinds of risk: The risk that you’ll trip and fall, the risk that you’ll get sick, the risk that you’ll get into a car accident, the risk that your company will suffer financial distress, and many more. It can be frightening to think of all the risks you run every day, but preparing for these risks can help give you confidence by knowing that you’ve thought ahead and put strategies in place to manage what you can.
The first step toward taking control of your financial life is identifying your priorities and creating objectives. Ultimately, money is a tool that should be used to improve your life and support your goals. To begin the process of exploring your priorities in life, follow these steps: