What is the legacy you want to leave to the ones you love? Are they words of wisdom to ensure a successful career? Is it leaving a philanthropic footprint in your community for causes that are important to you?

For many, it is leaving their loved ones in a financially confident position. However, obtaining financial confidence can feel like more of a stretch to some. Members of minority communities, in particular, have not always experienced equal opportunities to build wealth. Housing discrimination and inequity pay have impacted minorities from purchasing homes. Additionally, a lack of estate planning also leaves minority families at a higher risk of losing what may be their largest asset, their home. For example, according to a survey completed in 2022, 35% of white adult respondents state they have a will, while only 29% of African Americans say they do.¹

Financial tools such as life and disability insurance, in addition to wills, can provide efficient solutions to help protect, build, and distribute wealth to the ones they love. This in turn can help their families to continue to thrive in the event a loved one is lost and help close the wealth gap experienced in the U.S.

Affordable term life insurance

A sudden loss of a family breadwinner or caretaker can have devastating financial consequences if you’re not prepared. Term life insurance is an excellent option to protect your family’s finances. A typical term life insurance policy has a duration of 10, 20, or 30 years.

A term life insurance policy is an especially valuable asset for younger adults who may need to protect families from financial hardship after a loved one passes away. When the death of an insured occurred, beneficiaries can use life insurance benefits to pay for funeral costs, debt reduction, or other expenses.

Term life insurance policies can often be converted to a whole life policy when the time is right. A financial professional can provide guidance on this option.

Living benefits of whole life

Whole life insurance is permanent life insurance that offers you many benefits. With whole life insurance, you enjoy level premiums and a guaranteed return on your policy’s cash value.

Also, you gain more than just traditional death benefits. You may be able to use the cash values of your whole life insurance policy to cover certain significant expenses, such as education for yourself or a dependent. In addition, you may be able to use whole life insurance benefits to help supplement your retirement income. With a whole life policy, you may not need to tap into your savings to fund critical expenses, whether they are planned or unexpected.²

Protecting your paycheck

For many people, being out of work due to illness or injury means losing a steady paycheck. This is a huge risk for anyone, and research shows that approximately one in four black adults have a disability.³ Potentially missing work due to a disability can cause significant harm to your finances and widen the wealth gap.

However, with a personally owned disability insurance policy, you receive income that can sustain you for the short or long term if you suffer an injury or illness. That way, you won’t drain your savings, and you can protect or even grow your wealth during a difficult passage. Disability insurance covers a share of your paycheck if you are unable to work because of an illness or injury. Even if you have disability insurance through an employer, it may not be enough to cover all your living expenses, so a personal disability insurance policy is a smart move.

Working with a financial ally

If you need to grow your wealth, financial professionals can be a source of knowledgeable and compassionate support. An experienced financial professional will listen to learn your unique situation and guide you to make financial decisions that align with your long-term goals. Equipping yourself with fundamental financial know-how and building a relationship with a trusted financial professional can put you on a path to a more confident future.

Brought to you by The Guardian Network © 2022. The Guardian Life Insurance Company of America^®, New York, NY. 

2022-146138 Exp. 11/2024