Insurance is an integral part of establishing a safety net, should something unforeseen occur. It provides protection against these life events, which could significantly impact your financial well being. There are multiple forms of insurance, all of which have a place in the foundation of a financial pyramid. Which forms are right for you, and in what proportions, should be discussed with a licensed financial representative. Life, disability, liability, property and casualty, health, and long-term care are forms of insurance available from a multitude of providers.
Life insurance is unique in that it can be an effective tool for both protection and accumulation.
While it does provide a death benefit, some types of life insurance can also be used as a source of retirement income, funding for a child's education, or as a source of cash in an emergency. Looking at the planning pyramid, you can see that life insurance is not the only type of protection to consider when building your foundation. But because of its lifetime benefits, life insurance is arguably one of the most important types of protection to have. The stage of life you are in and the needs you have do affect what kinds of insurance you will want to purchase. But the whole point of insurance is looking to the future, admitting it is unpredictable, and acquiring protection against what may come.