Find out why horizon planning is so important

Throughout life, your needs are constantly evolving. What you needed yesterday is probably different than what you may need today. So it’s important to plan ahead for what’s on your horizon. At Nationwide®, our breadth of life insurance solutions can help you with that at every stage of your life.

At what stage of life should I consider horizon planning with life insurance?

When it comes to horizon planning, sooner is better. That’s because an early start can help ensure that you have the available assets to help cover or supplement the cost of major life events such as a home purchase, retirement, long-term care and more.

How do I start?

The first step in any horizon planning journey is to speak with your financial professional. This will give them a better idea of where you are in life, what life events you may be expecting and what your unique financial needs are — now and in the future. Then your financial professional can help determine the life insurance solution that best aligns with your goals and horizon planning needs.

What situations are important to consider?

When talking with your financial professional about the life insurance solutions that could help meet your needs, it’s important to discuss:  

• Income and expenses: Factor in your salary and additional income sources with your recurring expenses such as rent, mortgage payments, utilities, groceries and entertainment
• Beneficiaries: Know who you want as your beneficiaries and what if any specific instructions you have for the distribution of the life insurance benefits
• Debt: Include your debt, such as student loans, credit card debt, mortgages and car loans, as well as their respective interest rates and repayment schedules
• Financial goals: Know your short-term and long-term financial goals, such as buying a home, saving for retirement, funding education or starting a business
• Estate planning: Share details about any estate planning you’ve done, such as wills, trusts and beneficiaries
• Health information: Provide details about your health history and any current medical conditions

What are the long-term benefits of life insurance?

When it comes to the long-term, life insurance offers key benefits that can help with:

• Wealth transfer: Creating a legacy for loved ones through tax-free death benefits
• Estate planning: Minimizing estate taxes and ensuring smooth asset transfer
• Business continuity: Protecting family financial interests by facilitating business transitions

What are the short-term benefits of life insurance?

Life insurance isn’t just for long term financial plans. There are also a number of short-term benefits you can take advantage of:

• Emergency funds: Tapping into life insurance for a financial safety net during a crisis
• Tax efficiency: Taking advantage of tax-deferred cash value accumulation within permanent life insurance
• Long-term care (LTC) coverage: Accessing a portion of the death benefit while you’re living for medical expenses

What major life events can life insurance help you with?

Life insurance can help you with a wide range of needs, whether they're immediate or further down the road:

• Mortgage protection: Life insurance can be used to pay off an outstanding mortgage balance
• Income replacement: If your significant other passes away unexpectedly, life insurance can help replace the lost income so that you can maintain the same quality of life
• Final expenses: Funeral and burial costs can add up quickly, and life insurance can help cover or offset the costs
• College funding: Certain life insurance solutions offer a death benefit that may be invested and can potentially grow to the total tuition required by the time your children reach college age 
• Estate tax and inheritance tax: Having a life insurance policy can help provide relief to your family when they inherit your assets and can also help minimize estate taxes

What type of life insurance fits with my horizon plan?

This is something that you’ll want to discuss with your financial professional, but you can begin learning more and comparing the available life insurance solutions.