Life insurance can be a powerful tool to help protect against the unexpected—and as part of an overall financial plan. Here’s how:

Financial life plan goal: Manage debt

Solution: Use term insurance to help with student loans, a home mortgage and other debt, so your family doesn’t get stuck with those costs if you’re not around. The younger you are, the more affordable your premium rates may be—and this coverage is likely to be less expensive than you think.

Financial life plan goal: Avoid income disruptions

Solution: With term insurance, you can help replace future income and make sure that your family is supported no matter what happens to you. You can also help with major anticipated expenses such as college tuition or larger medical expenses.

Here are seven major life events and how they may impact your life insurance needs.

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Financial life plan goal: Help protect assets

Solution: Help protect your home and other assets with life insurance to provide emergency financial resources if something should happen to you. Use the cash value from a permanent policy in an emergency and borrow against it if the need arises—just be sure to pay back the loan in total when it’s due.1 Some policies also allow you to access part of your benefit in an emergency (for example, to pay medical bills) under certain conditions, such as a terminal illness.2

Financial life plan goal: Create stable retirement income

Solution: Purchase an annuity through regular premiums or a single premium to provide steady income after you retire.3

Financial life plan goal: Pass wealth to the next generation

Solution: Purchase permanent life insurance to pass a generally tax-free inheritance to your heirs.

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People with a financial plan feel more confident about managing money. See how life insurance can fit into your planning.

1Benefits may be reduced by this and any other loans on the policy. A 7% interest rate and $75 fee apply.

2Receipt of these accelerated benefits may be taxable, and that assistance should be sought from a personal tax advisor. (Accelerated Benefits Model Regulation)

3During the surrender charge period, withdrawals exceeding 10% will be subject to a surrender charge that may be higher than fees associated with other types of financial products and may reduce principal. See contract for specific details of the surrender charge schedule.

Annuities are not short-term products. Withdrawals prior to 59½ may be subject to IRS penalties. AAA Life and its agents do not provide legal, tax or financial advice. Please consult your professional advisor prior to the purchase of any policy or contract. Life insurance underwritten and annuities offered by our affiliate, AAA Life Insurance Company, Livonia, MI. AAA Life is licensed in all states except NY. ALAN-25644-519-XX

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