Life insurance doesn't just protect you, it can help build wealth, expert says
BOSTON - Life insurance can be an important tool for your family and your future. Some may be thinking they don't need it, at least not yet, but it's important to do your research as early as you can.
When you hear the words "life insurance" your knee-jerk reaction is likely that it's only a significant tool when it comes to protecting your family in the event of your death.
According to the latest data from Prudential, one out of every four Black Americans believe that life insurance is only for final life expenses.
Shirleyann Roberston, a financial expert with Prudential, says it can also help you build wealth, not only for the here-and-now, but for the next generation.
"You know I'd rather see you have something, [rather than] nothing at all. I'd rather see you have something at 20 or 50, or whenever... the key is to get life insurance. But yes, when you were younger you didn't think about life insurance, but at that time is when you can get it at the most lowest price," Roberston told WBZ-TV.
Robertson said even as a more seasoned person, like herself, she said it's important to enroll in your employer's plan, but to also have some life insurance outside of work as well.
The important thing to remember is different insurance products offer different benefits. Some will pay expenses if you become critically ill, other policies help sustain a business in case the owner is no longer able to run it, and some can provide income during retirement, similar to a Roth IRA.
"The reason why it's a necessary overall piece is because life insurance is more than just a death benefit. It's a living benefit as well, and I'll use myself in that example where I have layers of life insurance policies that protect me throughout my life," Roberston told WBZ.
"The first layer of protection that I have says that if I'm terminally ill, if I'm confined to a nursing home, or if I have a critical illness, my death benefit will provide me protection while I'm alive. My next layer of protection says, as the key person of my company dollars we pay to my partner, so the company continues. The third layer of my protection is paid to my trust and the fourth part of it is the living benefit and the cash value is the dollars that you can access today, tax-free money."
Robertson said she wants people to think of life insurance as being just as important, if not more than, insuring your car and your home.