Financial confidence doesn't come from knowing exactly what the future holds. It comes from having a plan. Insurance products—such as group disability insurance, life insurance and annuities—can play an important role in that plan by offering protection for today while helping you prepare for the years ahead.
Let's explore how products can fit together to cover you now and later.
Group disability, group life and term life insurance: Helping protect your paycheck
Income protection can be an important part of building financial confidence. Most people insure their homes or cars, but they often overlook one of their most valuable assets: their ability to earn an income. Short-term and long-term group disability insurance—often available through your employer—is designed to replace a portion of your paycheck if you're unable to work due to a covered illness or injury. Group life insurance offered through employers and individually purchased term life insurance provide financial protection for your loved ones if you died unexpectedly and they consequently lost your income as well.
Permanent life insurance: Protection with added flexibility
Life insurance is typically purchased to help protect loved ones after your death, but certain permanent life insurance policies can also help you today by building cash value over time that you can access through loans or withdrawals. That cash value could be a potential source of funding for future medical costs or to supplement retirement or other future needs. Talk to a financial professional to evaluate your situation, but knowing that you and your loved ones have financial protection in place can help give you peace of mind about your future.
Annuities: Getting ahead of retirement income planning
For many Americans, retirement income comes from Social Security, 401(k)s and personal savings. Annuities can also play a part in your long-term strategy. Annuities are designed to help you transition smoothly into retirement by helping to grow and protect your savings and turn a portion of it into a guaranteed income stream that supplements your other sources. Establishing an income stream you can plan for today can help alleviate some of your concerns for the future.
Hypothetical scenario: Bringing it all together
Lori is 45 years old and has been working full-time for many years. She is focused on saving money and planning for the future. Like many people, she wants a financial plan that can help her prepare for whatever life may bring. Here’s how she built a protection plan that helped provide peace of mind as she progressed toward retirement:
- Lori enrolled in group disability insurance through her employer. When she experienced a covered illness that kept her from working for several weeks, her coverage helped replace part of her paycheck while she recovered. She didn't have to rely only on her savings to help cover everyday expenses, and she was able to focus on getting better and returning to work.
- As she advanced in her career, Lori wanted to build on her financial confidence. She purchased a permanent, universal life insurance policy that can build cash value over time. Knowing her loved ones would have protection brought her peace of mind, and she liked that the policy's cash value could provide additional flexibility in the future if her needs changed over time.
- As she got closer to retirement, Lori started thinking more about how her savings will translate into income in the future. With help from her financial professional, she built a retirement plan that included Social Security benefits, 401(k) savings and an index-linked annuity designed to grow and protect her savings and provide guaranteed income payments for her lifetime.
For Lori, financial confidence came from having a well-thought-out plan. While each solution serves a different purpose, together they helped her feel more prepared for whatever comes next.
Important considerations
No single product can meet every financial need. Disability insurance, life insurance and annuities each serve a different purpose and can complement each another as part of a broader financial strategy. The right approach depends on your current situation, goals and needs. A financial professional can help you determine what’s best for you.
Additional reading:
Short-term and long-term disability insurance: Financial protection when you need it most
Living benefits: Life insurance benefits you can use today
Retirement planning feels different now: Annuities are ready to meet the moment
