Over the years I’ve had the privilege of sitting down with many people. Families and business owners alike. We always discover opportunities when speaking to people. These opportunities are margins. They exist to help protect their loved ones in times of catastrophic loss.
I‘ve always maintained that people should have enough Life Insurance to cover the burial. A recent experience shared to me by a client emphasizes the importance. Let’s consider this, you love your family, wife, and kids. Each day you wake up with your responsibilities. And each day you apply yourself at work, life, to your children, and to your spouse.
If you do not come home from work tomorrow, who would replace your income? Even more, who would pick up your chores and responsibilities? Have you considered the long conversations? The children not getting into college by scholarship. Every parent hopes they do, but if they don’t, would a little money help stimulate Sally Mae?
Did you think about Jr’s first car? Fido’s food? Your 10 year anniversary? Cindy’s wedding? Of course you want to be around for these events! But if you aren’t, where do the funds come from to take care of these obligations? I promise you the obligations won’t be forgotten. Especially if the money is not there.
The following example concerns a family with a single wage earner. The effects are just as disastrous in a dual wage earning family. Especially where each member has an equal share of responsibilities. There just isn’t enough time in the day to take care of the chores that your loved one used to carry out together with you. These are the following excuses I often hear:
- We’re not ready
- We need to think about it
- We already have life insurance” (even when they don’t)
- I’m too young
- It costs too much…
I want to discuss the last point first.
Term life insurance generally isn’t expensive. Two factors dictate the premiums, morbidity tables and interest rates. Since people are living longer and interest rates are low, premiums are the lowest today. When is the right time? The right time is as soon as possible. When it comes up in conversation and you realize you don’t have enough or any. Word to the wise, your employers life insurance policy won’t carry over when you leave. At least not at a comparable cost. The right time is now when you are at your youngest and healthiest, it is cheapest.
Imagine you wake up one morning and you get a phone call that your best friend Larry died. Larry was a childhood friend and you are in your early 40’s. Since Larry died of a sudden heart attack, you start thinking… “Man, I need to protect my family”. So you call a friend who specializes in life insurance. Maybe it’s your financial adviser who only cares about your “”financial well-being””. Or maybe you call a Life Insurance Specialist.
True Life Insurance Specialists/Brokers, deal with hundreds of carriers. Picking one should always be about you and not him/her. (Be wary of someone who only represents 1 or 2 products/carriers). You sign the papers and a nurse comes out to see you for blood work and urine as part of the underwriting. During the medical underwriting they find abnormalities in your blood/sugar and urine readings. They re-evaluate you and come to find out you have adult onset diabetes.
Your dilemma is not that you are uninsurable. It’s that to insure you now, at your age, with your condition, it would cost more. The idea is simple. There are diseases that have short response times from detection to terminal illness. Things happen to our bodies that we cannot see between our annual wellness exams. We are still susceptible to disease and illness.
Which is why the right time to protect your family with life insurance is when you are young and healthy. A concept known in the industry as “Protecting your Insurability”! There’s nothing more to think about. What’s more important than protecting the ones you love? And not just from financial ruin, but from the responsibilities left without you. I know that my loved one takes care of me in ways that whom without, I’d have to hire help.
This just to keep up the standard of living. If you don’t have life insurance, don’t say you do, just listen. Maybe you can’t afford it today, but please take down the number! Take notes! I’m more than willing to go over this as many times as it takes. When you can afford a few dollars a week, let me know so we can explore your options.
A quote is free! And since everyone’s situation is different, everyone’s experience will also differ. Let’s get together and discover a realistic solution to meet your goals. Life insurance shouldn’t be just calculating a large death benefit. It should be calculating the reality of your need. If you have 4-5 policies and you are healthy, combine them to one, it’ll be cheaper.
If your salesperson doesn’t offer an evaluation yearly, find an adviser. My clients are also my business partners. I depend on them as they depend on me throughout the year to keep them informed of changes to their policies. I announce updates that would benefit them, and even solutions to unexpected problems. Consider it!