Are you prepared if one of your loved ones were to die?
By: Dominique Huff
Financial literacy and empowerment go beyond credit scores, checking accounts, $ 1,000 reserves, and social media chatter. George Clark from New York Life wants you to think about what will happen to your loved ones if you die.
Are you prepared if one of your loved ones were to die? Will a family death elevate your financial standing or send you straight to poverty? The Life Insurance Marketing and Research Association (LIMRA) 2023 Insurance Barometer Study states that 52 percent of American adults report owning life insurance, and 41 percent of adults–insured and uninsured–say they don’t have sufficient life insurance.
LIMRA also notes that lack of knowledge about life insurance appears to be the most significant obstacle preventing younger parents from getting coverage. Less than one in three members of Generation Z and Millennial parents feel very knowledgeable about life insurance. More than 40 percent of Generation Z and 29 percent of millennial parents say they haven’t purchased coverage because they don’t know how much coverage they need or what type to buy.
Clark’s father died at age 49 from a massive heart attack, and his mother, who was older than his father by four years, outlived him by almost 30 years. His father was a provider male while his mom was a stay-at-home mother. “My father took care of business, so our home was paid for when he died. My mother did not have to worry about how we would make it,” he recalled. “That’s my why when it comes to life insurance and the community.”
Now, Clark recognizes that many think a 401k is their pension, and granted, most firms went to that model over the years. But he warns people a 401k and a pension are two different things. “The 401k is your payout when you retire, which you receive in a lump sum. However, you need more when it comes to your living and that of your family,” he said. “If people were to invest in annuities, they would create guaranteed incomes for themselves so they don’t have to worry about going back to work even on a part-time basis to make sure they pay for food, medications, and bills.”
Clark wants you to think of your life and family as a business. One can obtain life insurance, long-term care, investments, and annuities through New York Life. And the money to start most programs is less than some would imagine. Hence, it opens the door to those of various occupations, self-employment, business ownership, gig workers, and other forms of income generation.
The conversations must happen multiple times in one’s life, from the start of new careers, retirement discussions, the birth of children, divorces, and other significant life events. “I want folks to have enough education to make an informed decision. My first question is, what is your financial plan for the rest of your life,” he said. “From the young professional, mid-lifer to even the elderly, it’s not too late or early to start these conversations.” With so much wealth being lost and poverty being created due to significant life events and death, Clark wants to elevate the mindset of people to be proactive instead of reactive.
In other words, GoFundMe or soliciting for Cash App donations should not be a tool of last resort. “We have to stop thinking insurance is a scam, unaffordable, or something that can wait,” he concluded. Clark is willing to meet and talk with those who want to discuss financial futures. He can be reached at 770-714-4918 or gclark01@ft.newyorklife.com.
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