When you bought life insurance, it was for the future. The money invested was to protect your family, provide a nest egg or create a legacy. Unfortunately, all of that and more has been eroded by the recent rise of inflation—from gas, groceries and more. Even car insurance cost is up. Why? The cost of repair has risen significantly.
“As the cost of living increases, the future value of your policy goes down,” states Bill McMullen, Countryside Team Lead. “With inflation at a 41-year high, we may see that the decisions we made in the past need to be modified for the current state. As of late, we’ve found more than one case of policies that are not enough for these unprecedented times.”
With inflation peaking at 9.1 percent this past June, it has impacted assets like life insurance policies. The entire process of buying insurance is built on figuring out how much financial protection you will need, often well into the future. And since it has been awhile since we have seen this level of inflation, many people have policies that will struggle to cover the future cost of living. It really has taken a bite out of spending power. “It’s not just inflation. I have seen where people have just underfunded the amount of insurance required. Then add the latest round of inflation, and that has been the wake-up call for many,” said Kendra Turner, Maple Trail Team Lead.
The best way to financially protect your family is with a comprehensive life insurance policy in place that addresses your needs and avoids shortchanging your future with a less-than-ideal amount. “I’ve heard more than once from individuals who were more than surprised by how little the cost increase was of $1 million in life insurance coverage,” states David Schonhardt, Advanced Case Specialist. “Everyone needs to do a quick checkup on their policy values now. I recently sold a $1 million term policy because of a simple checkup. It sounds like a lot, and it is, but it was exactly what they needed at a rate that was reasonable.”
We have a full lineup of life insurance options from birth to your golden years.
Here are ideas to consider:
Check out Policy Riders—These are add-on options to your policy that help blunt the effects of inflation.
Consider a Cash Value Life Insurance Policy—With a Universal Life or Whole Life insurance policy, your life insurance value can grow over time through either a dividend or interest earned.
Add Coverage—Talk to your local Sales Representative about whether or not it makes sense to add more insurance to what you currently have. Our Sales Representatives are trained to provide you with the options that make the most sense for you and have a fiduciary responsibility to do so.
To find your local Sales Representative, visit www.catholicunitedfinancial.org/rep-finder.