What do most Americans not know about life insurance?
Anthony Anderson: That it’s an investment in the future of their family. If something happens to the head of the household, that family falls apart. But if they have life insurance, that family can stay together and continue with their lifestyle. I think that’s a misconception we need to clear up for people who really don’t know.
While Sam had some life insurance through work, Amy convinced him to purchase an individual policy, which would give him sufficient coverage and wouldn’t disappear if he changed jobs. Amy got coverage as well. Her reason was straightforward: “I didn’t want to leave him with a child and struggle with work and finding someone to take care of her.”
Several years later, Amy was walking their daughter, Charli, to school when her phone rang. That call was the beginning of a life-altering morning.
“Even on their limited income, my mom and dad instilled upon all of us the importance of planning for the future and the fact that tomorrow isn’t promised to anyone,” Anthony Anderson says. “I know how hard it is to lose someone you love. An accident took my brother when he was 26 and shortly after, I lost my father to diabetes, a disease I, myself, live with today. It was rough getting through those deaths, but the fact that they both had life insurance made it so much easier.”
Critical illness insurance pays you a lump-sum cash amount if you are diagnosed with any one of the critical illnesses covered by your policy, even if you make a full recovery. Disability insurance on the other hand pays you a regular payout when you’re ill or hurt and can’t work. It protects your income from the very real possibility you’ll become disabled for a period of time during your career, whether due to injury or illness.
If you are concerned about outliving your savings, perhaps an income annuity will fit your needs. An annuity can offer a guaranteed lifetime income that you can’t outlive.
Fixed income annuities are offered with a number of payment options, allowing you to structure payouts according to your financial goals and objectives. Consider these four income streams: