Why life insurance, annuities are financial plan must-haves


Issues around financial security are deeply personal, especially when life shifts unexpectedly around you. For me, that moment came when my company relocated me from Hong Kong to New York City. My family and I were suddenly starting over in a new country, without a built-in support network. The responsibility to protect and provide felt heavier than ever. 

Hilani Kerr

Hilani Kerr, head of Zinnia’s wealth and distribution platforms

In that moment of vulnerability, I asked my wealth advisor a question that would prove transformative: “Do I need life insurance?” 

This wasn’t just about buying a financial product — it was about protecting the ones I love if life took an unexpected turn. The advisor connected me to a certified financial planner within their practice who took the time to understand not only my finances, but also my values and my family’s unique needs. 

Through that personalized lens, we built a protection strategy that addressed multiple dimensions of financial security. But in addition to peace of mind, that experience opened my eyes. I had access to exceptional advice, but what about the millions of Americans who didn’t? 

READ MORE: How a life insurance strategy could save some wealthy estates millions

Longevity has changed the rules

Planning for retirement used to mean preparing for a fairly defined chapter at the end of life. Today, advisors are building financial strategies that need to last for 20 or 30 years beyond age 65. Or longer: The number of Americans over 95 increased from about 425,000 in 2010 to 631,000 in 2020, according to the U.S. Census Bureau.  

That’s why even in these volatile economic times, the greatest risk to a client’s long-term financial security is no longer stock market fluctuations, it is outliving their money.

Life insurance addresses that risk in powerful ways. More than a death benefit, it can replace income, keep education goals on track, protect the family home and enable smarter wealth transfer and estate planning.

Annuities fill a different but equally essential gap. As traditional pensions become more rare — only 15% of private-sector workers have defined benefit plans, compared to 38% in 1980, according to the U.S. Bureau of Labor Statistics — more Americans face retirement without a predictable source of lifetime income. In such a world annuities are not a luxury, they are a necessity.

READ MORE: How advisors can ease client fears of outliving retirement income

Two myths, one reality

Importantly, these products are not just for the wealthy or those with access to a financial planner. They are vital tools for anyone who wants to build a lasting foundation of financial security. Many dismiss life insurance as too pricey, unnecessary or overly complicated. Let’s address those commonly held beliefs.

It’s too expensive. A healthy 30-year-old can purchase term life coverage for a monthly cost that’s the same or less than a streaming subscription. For those living paycheck to paycheck, even modest protection can be life changing. Financial planning must meet clients at all income levels and provide accessible, scalable options that grow with them.

Employer coverage is enough. Group life insurance typically offers a death benefit of one to two times the policyholder’s yearly salary, far below the 10 to 15 multiple experts recommend. And that coverage vanishes when the job ends — precisely when it may be needed most. A personal policy ensures continuity and control.

Policies are too complicated. Let’s add to the above misconceptions one reality: Consumers are often overwhelmed by jargon, product types and conflicting advice that accompany life insurance and annuity products. Understandably so: For too long, insurance agencies have made protection products harder to understand than they need to be. 

Planning for financial longevity is already a complex process without having to navigate a maze of confusing terms. Across the financial services industry, we must do more to demystify the products, the process and the costs. 

Financial protection for all

We have all witnessed families facing the double burden of emotional and financial hardship. A sudden illness. An unexpected job loss. An enforced retirement. These stories are far too common. 

True wealth planning is not just about accumulating assets. It is about protecting income, preserving legacy and ensuring well-being across every stage of life. As financial professionals, we need to reframe the way we think about our role. Helping clients grow their money is important, but helping them protect it is just as critical. In this quest, life insurance and annuities are not side products; they are foundational tools that support long-term financial wellness. 

When we make financial protection universal, we don’t just improve financial well-being — we change lives by ensuring financial longevity that truly lasts a lifetime, however long that may be. 

Financial longevity is the future of wealth planning I believe in. And I’m proud to help build it.



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