Financial planning often brings on thoughts of the future and a bit of anxiety if we are being honest. Financial planning does not need to be an anxious topic, though. At AFI Insurance, serving Denver, CO we love taking the opportunity to better educate our clients on these important topics. Keep reading to learn about financial planning insurance and how it can help you plan for the future.
What is Financial Planning Insurance
Insurance of all types is an important part of your financial plan. However, when people speak about financial planning insurance, they are often talking about whole life insurance policies. A whole life insurance policy is a type of life insurance that can build cash value over time. After the third year, the policy begins to build cash value. At any time, you can take out a loan on the cash value of the policy. Many people like to think of this as a supplement to their other forms of retirement savings.
The best way to make this method work for you is to establish this policy early in life. This gives the cash value more time to build. Cashing out the money also has certain tax exemptions making it an appealing form of retirement supplement.
The Role of Insurance in Financial Planning
In addition to using whole life insurance as a supplement to retirement, it is also important to remember that all of your insurance coverages are a vital part of any long term financial plan. Your financial security and the financial security of your family can be greatly affected by an accident or a death. Having sufficient insurance in place will safeguard your financial security so that these events do not leave you financially vulnerable.
If you would like to learn more about insurance and financial planning, please contact our staff at AFI Insurance serving Denver, CO.