Life Insurance Is A Tool

Most people act for a reason. When arranging life insurance, do you help them understand what it is for?

The balancing act

We live in a sometimes precarious mix of past, present, and future. The key is pretty simple.

You earn all your money in the present. You generated your skill and knowledge in the past. You spent money by borrowing in the past. Equal to a promise to deliver money relying on present and future earning.

You will need money some time in the future when you stop working for money. You will need the money you sent ahead in time. Saved and invested.

Your dependents will require money to live even if you don’t.

The key variable

The whole thing relies on there being more time. Time to pay off debt and create capital for future use.

Life insurance resolves a “What if” question. What if you don’t get enough time to do everything? Life insurance creates the wealth you would have but for your untimely passing. It looks after your obligations.

Life insurance let’s you die neat.

Life insurance lets you live better too.

The premium required is quite low compared to the other ways you have available to resolve the obligations you have created.

When you have problems, look for a way to resolve them by writing a check. Always remember Harvey MacKay’s Lesson 62.

“If you have a problem you can fix by writing a check, you don’t have a problem, you have an expense.”

Obligations you create will be resolved somehow. Every way to do it costs something. A small premium for you, or a big change in lifestyle for those you leave.

The adult approach to Lesson 62.

When faced with an expense, choose the cheapest, reliable way that works.

In this case it would be life insurance.

I help business owners, and professionals understand and manage risk and other financial issues. To help them achieve their goals, I use tax efficiencies and design advantages to acquire more efficient income and larger, more liquid estates.

Please be in touch if I can help you. 705-927-4770

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