Four Financial Tips to Navigate Major Life Changes

Posted by  //  September 18, 2014  //  Allstate, Articles

New York Residents Offered Insurance Needs Analysis from Allstate

Families in New York welcomed more than 236,000 newborns in 2013.1

“A new baby means lots of sleepless nights,” said Heather Dougherty, New York Regional Financial Sales Leader, “but it shouldn’t be because you’re worried about having enough life insurance.  If you’ve just had a baby, married, divorced, purchased a home, retired, or inherited assets it’s the perfect time for a financial review. Life insurance costs less than most people think, and an experienced professional will make sure you’re not paying too much money for the wrong kind of coverage.”

Here are four financial tips for navigating dramatic life changes, whether caused by a baby or another (and maybe, quieter) major life event:

  • Seek advice. An experienced parent can tell you how to install a car seat or reassure you that crying due to colic will go away “soon.” Similarly, an experienced advisor can ask you 3 or 4 questions to determine how much life insurance the primary breadwinner in your family needs.  Estimating college costs for your newborn can be done simply, as well.  Average costs for public and private schools—indexed for inflation—are easily determined with free on-line calculators.
  • Learn the lingo. The Internet has a wealth of information on a variety of financial topics. You can find definitions of basic terms and concepts by visiting not-for-profit organization websites, such as the Financial Planners Association (www.plannersearch.org/life-events) or LIFE Foundation (www.lifehappens.org/insurance-overview), as well as financial dictionaries such as Investopedia (www.Investopedia.com).
  • Take advantage of online tools. For example, check out the life insurance self-assessment at www.myallstatefinancial.net to learn more about life insurance in light of significant life events, such as a change in marital status, milestone birthday, buying a home or expanding your family. Try the How much life insurance do I need? calculator to get an idea of how much coverage you’d need to protect your family’s way of life if something were to happen to you.
  • Call on someone knowledgeable. For complex financial decisions, it’s reassuring to consult someone knowledgeable in person. Rather than the one-size-fits-all information you’ll find online, a real live human being can tailor information and recommendations to your unique circumstances. An advisor can also refer you to a specialist if your situation demands more complicated tax planning.

Prompted by September’s Life Insurance Awareness Month, Allstate agents and personal financial representatives are offering a complimentary insurance needs analysis. They will ask questions about your personal situation and goals to help you assess your insurance needs. For example:

  • Your risk profile. Based on your income coming in, expenses going out, and savings, do you have risks that would be difficult or impossible for you to cope with financially? These risks could include death, a serious injury or sickness, a car crash or home fire.
  • Your safety net. Are you likely to be able to improve your financial situation by paying down debt, changing your spending habits or increasing your emergency cash fund? Are you single, divorced or married? Double income or single income? How stable is your employment situation? Do you have life insurance through work?
  • Your needs. What are your needs over the next few years and in the long term? Do you want to fund college, vacations and/or retirement? Is it important for you to provide for elderly parents or leave a legacy to your adult children?
  • Your wants. What are your dreams? A second house, a round-the-world trip, starting a business?

The answers to these questions can help you determine whether you need life insurance – or more life insurance – as well as what type and how much to buy. Click on http://allstateagencies.com/agentlocator/searchpage.aspx to find an Allstate agency near you.

Finally, it’s easy to procrastinate on major financial decisions. When you respond to major life changes by taking financial action, don’t forget to reward yourself, whether that means a nice restaurant dinner or a peaceful hike in the woods. (That new baby will enjoy hiking, too.)

Provisional data from the National Vital Statistics System, National Center for Health Statistics, Centers for Disease Control and Prevention.

For More information and a new quote please call Shirley Eizember, Pinckney Insurance Agency, 41 Port Watson St, Cortland New York. 607-756-8505

The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer known for its “You’re In Good Hands With Allstate®” slogan. Now celebrating its 80th anniversary as an insurer, Allstate is reinventing protection and retirement to help nearly 16 million households insure what they have today and better prepare for tomorrow. Consumers access Allstate insurance products (auto, home, life and retirement) and services through Allstate agencies, independent agencies, and Allstate exclusive financial representatives in the U.S. and Canada, as well as via www.allstate.com and 1-800 Allstate®.

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