Evolving Uses for Life Insurance to Help Enjoy Your Final Act

cut out paper family with two parents and two kids

Evolving Uses for Life Insurance to Help Enjoy Your Final Act
By David Strother, CFP®, AIF, AIFA

When you watch a performance, the last act greatly impacts how you leave the theater and your lasting feelings about the experience. In our own lives, the last act matters significantly, too. After all it’s the culmination of what we’ve worked our lives to build.

Recently, I have been reading a book called Happiness Is a Choice You Make which looks at what it means to grow old through the stories of people ages 85 and older. John Leland, the author, meets with people in this age group to learn about challenges they face including loneliness, deterioration of their mind and body, and deterioration of their quality of life. Despite these circumstances, the people Leland met lived with surprising contentment. Each day, they woke up and chose happiness. They had optimism for the future. This attitude seems to be a common trait of those who lived at least 10 years beyond the average life expectancy. This struck me as enormously significant. Our attitude and optimism not only enrich our life but elongate it too.

This thought inspired me. There are specific choices we make that dictate how our last act plays out, especially when it comes to protecting our families. Our circumstances become more complicated as we age, but advance planning can give you more choices and more control in your final days. As September happened to be life insurance awareness month, it seems timely to explore how this particular product can be a solution for many stages of your life.

Life insurance ensures that you can protect your family if your life circumstances change. If you have done proper planning, you are giving yourself freedom to use your money to enjoy your life. Insurance can have multiple functions depending on your age and your current status in life.

When you are young, life insurance can be used to replace your current income stream if something happens to you or your spouse. Adding life insurance completes your financial plan by protecting your loved ones from future financial hardship or having to significantly change their quality of life if circumstances change, such as your untimely death.

When older, life insurance can also serve a valuable purpose. You might no longer need its death benefit to supply income for surviving family members – maybe because your children are older and earning their own income. However, it can give you more freedom to use your money to enjoy your life. Proper planning through life insurance, investments, college savings plans, and more, mean you can dip into other discretionary savings to enjoy the things you love most!

Life insurance can also assist with unreimbursed medical or long-term care expenses. You never know how long you might need hospice, an assisted living facility, or in-home care, so this takes some of the guesswork out of the equation. When you don’t have to dip into discretionary savings for those unplanned expenses, it means they’re available to use for something more fun!

Most insurance agents don’t have information on your full financial picture. They’re trying to sell you specific products. However, working with your independent financial advisor to secure life and long-term care insurance can ensure you’re covered – but not over-insured – for your life ahead. Their advice should be holistic and product-agnostic to meet your financial needs.

When you visit a theater to watch a play, you expect the first act to be different than the second act and so on. Since our lives can be broken down into separate acts, it is critical to make sure the advice you receive is the advice you need at that time. At Darnall Sikes Wealth Partners, our goal is to make sure all the facets of your financial life fit seamlessly together so you can enjoy the grand finale of your final act. We are here for you.


The views and opinions expressed in this article are those of the financial professional and do not represent the views and opinions of Avantax Wealth ManagementSM or its subsidiaries.