Get Up Erica Featured Video
As the new year approaches, you begin to review your finances and insurance updates. Today we’ll be talking specifically about life insurance and financial expert Clyde Anderson who stops by Get Up Church to help. How can you find your inheritance with life insurance? How about living something for your family to pay for the expenses or keep their quality of life the same after you die?
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ERICA CAMPBELL: For some, it can be uncomfortable to talk about. But let’s talk about it today. Who should have life insurance? And why is it so important?
CLYDE ANDERSON: Well, I think you really have to think about it. This is important because Who are you leaving behind and do you want your family’s way of life to change? And you really need to ask yourself this question. If you die, will your family’s quality of life change? Will they need to move? Change school? Being able to go to college? You know, what would happen if you left? And so I think that’s the question we have to ask ourselves.
ERICA: You say it’s important to determine if you’re insurable. What does that mean?
CLYDE: Yeah, I think the younger you start, the cheaper it is. Because they’re going to look at things like your family, your medical history, your life expectancy, your risk factors. And those things, of course, you know, almost anyone can be insured, but the greater the risk, the higher the premium cost. You will pay later than you expect to get the insurance. So it’s always good to start early.
ERICA: There are different types of life insurance, how can people determine what type of life insurance they need?
CLYDE: We hear a lot about us. And there are a few different types that we need to be aware of: it’s term or lifetime. Term means it’s for terms, we’ll say it’s for 10 years, you might want to have cover for that 10 year period. if you believe that something could potentially happen at that time, but all of life is the one that is going to cover you for the rest of your life. So, from the moment you get the insurance policy, it will cover you for life. But there are also benefits that come with it. It is therefore essential to know and understand it.
ERICA: Can you use your insurance money while you’re alive? Because I know there are plans where the funds are actually usable.
CLYDE: Well, you know, that’s a great question. They really, what I’m saying is you really have to think about it, you can really create your legacy plan. Using insurance is really about leaving a legacy instead of a mess. You know, and we’ve seen this many times, we have to have the GoFundMe accounts for people when they pass away, because we don’t have, you know, in China they sometimes plan 100 years ahead. And when we don’t, it’s planning our own lives and destinies. And so we have to take control of that. And I think 60% of Americans don’t have life insurance coverage right now. And this is essential. And when I say a plan because you can use it like you alluded to, you can use it if you have a whole policy, you can use it to buy things like a car down payment on a house, you you can get from it, and you can even use it when you retire. That’s why I say it could be a wealth management strategy, and it could also be tax-free. So you want to look into that and consult with a tax professional to really understand.