January Is the Perfect Time to Revisit Your Financial Health

Financial Wellness Month offers a great opportunity to step back and evaluate how well your overall money strategy is working for you. One piece that often gets overlooked—yet makes a meaningful impact—is life insurance. Many people associate life insurance with later stages of life, but in reality, it can strengthen your financial stability both today and in the years ahead.

Life insurance doesn’t just prepare your loved ones for the unexpected—it can also serve as a versatile tool that supports your long-term goals. Below, we’ll break down what life insurance really provides, the different kinds of policies available, and how to make sure your coverage still fits your life as it evolves.

Understanding the Purpose of Life Insurance

At its simplest, life insurance guarantees a payout—known as a death benefit—to the people you choose if you pass away. This money can help those you care about cover a wide range of expenses, such as housing payments, outstanding debts, child care, final arrangements, or basic daily costs.

In other words, life insurance helps keep your family’s financial plan intact during a difficult time. It creates immediate access to cash when it’s most needed, easing the burden of unexpected events.

You maintain your policy by paying regular premiums. In exchange, your insurance company promises to deliver the agreed-upon benefit. That sense of security is a major reason why life insurance is often considered a cornerstone of a healthy financial plan.

Term Life vs. Permanent Life Insurance

Most life insurance falls into one of two categories: term or permanent. Each type offers different benefits depending on your goals, budget, and stage of life.

Term Life Insurance

Term life insurance covers you for a fixed period—commonly 10, 20, or 30 years. If you pass away during that timeframe, your beneficiaries receive the death benefit. If you outlive the term, the policy ends with no payout. Term coverage is typically the more affordable option and works well during high‑responsibility years, such as raising a family or paying down a mortgage.

Permanent Life Insurance

Permanent life insurance is designed to protect you for your entire lifetime, as long as you continue making your premium payments. In addition to lifelong coverage, it also includes a cash value component that grows over time. You may be able to borrow against it or withdraw funds, though doing so can reduce the final death benefit your loved ones receive.

There are two widely used types of permanent life insurance:

• Whole life insurance: Offers predictable premiums, guaranteed cash value accumulation, and a guaranteed death benefit. It’s steady and consistent, making it appealing for long-term planning.
• Universal life insurance: Provides more flexibility. You can adjust your premiums and death benefit, and the cash value growth depends on market performance. It carries more potential risk but also more customization.

Both types can be valuable if you prefer lifelong protection or want the added benefit of a savings element built into your policy.

Is the Cash Value Feature a Good Fit?

The cash value in a permanent life policy is often viewed as an added perk. Over time, this money can be used to help with large expenses such as tuition costs, medical needs, or even supplemental retirement funds.

However, it’s important to understand the trade‑offs. Cash value usually builds slowly in the early years, and loans or withdrawals may decrease the amount available to your beneficiaries later. Permanent policies also tend to come with higher premiums compared to term insurance.

If you need lifelong coverage or prefer fixed premiums, the cash value component may be a helpful bonus. Still, most financial strategies recommend prioritizing other savings and retirement vehicles before relying on a life insurance policy as an investment tool.

Customize Your Policy With Riders

Life insurance isn’t one‑size‑fits‑all, and that’s where riders come in. Riders allow you to tailor your policy to better match your personal needs and circumstances.

Here are a few commonly used options:

• Long‑term care rider: Helps cover costs if you experience a serious illness or injury that requires ongoing assistance.
• Terminal illness rider: Lets you access part of your death benefit early if you are diagnosed with a terminal condition.
• Return of premium rider: For term policies, this option may refund your paid premiums if you outlive your coverage period.

Some term policies also give you the option to convert your coverage to a permanent plan later without requiring another medical exam. This flexibility can be incredibly valuable if your health changes over time.

Riders can make your policy more adaptable and aligned with your long‑term goals, giving you coverage that grows and adjusts as your life does.

Simple Ways to Keep Your Life Insurance Current

Maintaining up‑to‑date coverage is an important part of staying financially strong. Here are a few practical steps to help ensure your policy still reflects your needs:

• Review your beneficiaries annually: Life moves quickly—marriages, divorces, and growing families are all reasons to update who’s listed on your policy.
• Check whether your coverage amount still fits: Changes in your income, debt, or family size may call for an adjustment.
• Look at your conversion options: If you have a term policy, see whether you can convert it to permanent coverage in the future without new health exams.
• Schedule a yearly policy review: Just like revisiting your budget or savings plan, a quick review of your life insurance can help you stay on track.

Life changes—and your insurance should keep up. A regular check‑in can help ensure your policy continues to protect the people and goals that matter most.

We’re Here to Help

If you’d like help reviewing existing coverage or exploring new options, reach out anytime. We’re here to support you in building a financial plan that gives you confidence and peace of mind.