McEvoy Ins Blog
Values are the glue that holds your family together. It’s important to share, document, and celebrate those values so that when the time comes, your family will continue living out the legacy you established. Those values may include how you handle your finances as a family, so it can be important to be open when discussing money with the people you love. Talking about financial planning can sometimes make people feel uncomfortable, but meeting with your spouse, children, or grandchildren to discuss financial decisions can better prepare your family for the future.
If you’re ready to have a family meeting, consider these tips to help you start the conversation.
Before the meetingIdentify the main topic
Don’t try to cover every financial topic at once. Instead, you can focus on one issue that’s important or recent. Sticking to one topic can help keep the conversation focused, and prevent family members from feeling overwhelmed.
Decide who should be involvedFor the initial meeting, you may want to keep the discussion small. Who you invite depends on the sensitivity of the topic, as well as factors such as family structure and distance. It’s a good idea to only involve the key people in the first meeting. You can always expand the circle in subsequent meetings. If you aren’t sure who to involve, consider asking for input from your financial professional.
Write down what you hope to accomplishWhen you have financial discussions with your family, the goal should be to make some kind of agreement or promise on the topic presented. Achieving this could take several meetings, so it’s important to be patient.
Create an agendaYou could ask your family what they think would be beneficial to cover in the meeting and then write down those points. The finished agenda then can be shared with your loved ones in advance.
Consider spending time with your family beforehandTo help ease tensions before the meeting, you may want to plan a dinner to help “break the ice.”
Talk to your financial professionalBefore the meeting, you may want to get some advice from a financial professional and discuss the family meeting goals.
Schedule the meetingTiming your meeting is important. You may want to avoid having financial conversations during big events, such as holidays, as they can be stressful. Instead, you could choose a moment when everyone is in a good place in their lives. Pick a date that works for all your desired attendees and a neutral, comfortable location.
Meet and communicateTalking about finances can feel strange, so it can be important to do it in a way that’s pleasant and agreeable for all involved. When you meet with your family, it’s important to lead the conversation in an open, honest, and focused way.
If it’s your first time shopping for life insurance, there’s a good chance you may not know which option is the right one for you. Finding the best match requires some homework before you make your choice. Here’s a breakdown of the various life insurance options to help you figure out which one fits best.
Term life insuranceTerm life insurance has level premiums that last for a set number of years (the term). This life insurance includes a death benefit in the form of a lump sum of cash that’s paid out to a beneficiary by the life insurance company if you die while this coverage is active. This lump sum can be used for a variety of things, such as burial expenses, mortgage, and debt payments, living expenses for your family, or donations, generally tax-free. Additionally, you may have the option to convert your policy to permanent coverage before the term ends. After the term expires the policy may either terminate or automatically renew annually. If your policy is slated to terminate at the end of the term period, then in order to continue the coverage you may renew for another term or shop for a new policy.
Guaranteed universal life insurance
Guaranteed universal life insurance is permanent coverage that provides the ability to guarantee a death benefit to any age up to a maximum age as stated in the policy, as long as the premiums are paid and the policy remains in force. Guaranteed universal life is not designed to generate cash value.
Indexed universal life insurance (IUL)Indexed universal life is insurance that offers death benefit protection, and the opportunity to earn tax-deferred interest on the interest credits linked to the performance of one or more stock market indices chosen. This feature gives you the potential for cash value accumulation plus, it offers downside protection in a poorly performing market because you do not participate directly in the stock market and the credited interest rate is never less than the minimum interest rate or zero percent (floor). The upside is limited by either an index cap rate or an index participation rate. The index cap rate is the maximum interest rate that could be credited to the policy. The index participation rate is applied to the index change in order to calculate the index credit. The premium paid in the policy is not directly invested in any index or the stock market.