Financial Planning with Life Insurance

Why is Life Insurance Important in Financial Planning?

People like to plan for living, and most have financial goals that they prioritize throughout their lifetime. These priorities often include reducing debt – such as bills, the mortgage and student loans – paying for medical expenses, leaving an inheritance and maintaining their family’s standard of living if they die.¹

Nearly one in five consumers say that these financial priorities are more important than getting life insurance.² But did you know financial planning with life insurance can actually help solve many of these economic concerns?

It would help if you didn’t have to decide between life insurance and saving for graduation, tuition, weddings, or retirement. With the right product, you can save for life events and help protect your family at the same time.

So, in what stages of life does life insurance fit?

Young Savers

For a single person without children, it may seem more important to pay off

 student loans and other debt than to take on a new financial obligation, especially if you’re trying to save up for something significant, like a down payment for a home or getting married. But if you’re planning on getting married, having kids, or buying a home in the future, now is a great time to think about life insurance financial planning to help protect these plans.

The cost of life insurance can vary based on:

    • Age
    • Health
    • Life habits

That means life insurance gets more expensive as time goes by. It’s more likely you will qualify for better rates now, while you are younger – making it smart to lock in lower life insurance premiums.

Mid-Life Planners

For mid-life planners, those with an established career, a home, and a family, life insurance becomes important for their children’s future.  This is usually a time to consider:

    • Graduation parties
    • College expenses
    • Weddings

Financial planning with life insurance could help make sure there are funds available to your family for these critical events if something were to happen to you. It can also help maintain their standard of living in the event they lose your income.


If you’re a mature adult, life insurance can help make sure your grandchildren have life insurance added to the financial protection they need in their own lives. It might also be time to start thinking seriously about an inheritance strategy for when you are no longer around.  Inheritance strategies help decide if you want funds to go to places like:

    • Children
    • Grandchildren
    • A favorite charity

Life insurance can help make sure these proceeds go where you’d like them and provide you with added peace of mind.

Simply put, financial planning with life insurance can help prepare you and your loved ones for a lifetime of priorities.

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AAA Life and its agents do not provide legal, financial, or tax advice. Therefore, you may wish to consult independent professional advice prior to the purchase of these products.

1,2 LIMRA 2018 Barometer Study