I know what you’re thinking…”oh, here we go…life insurance. here comes another sales pitch.”
No way! I hate salesmen! I want to 1) explain what life insurance is, 2) state how and when it benefits you, and go over how to determine 3) the appropriate amount you should have. And once you understand these facets of life insurance, I believe you’ll see life insurance as a must have, instead of an unwanted expense.
WHAT IS LIFE INSURANCE, AND HOW IS IT A BENEFIT?
Life insurance provides stability of lifestyle while you sort out all the craziness that ensues after a loved one is lost, which can easily be one of the most difficult events to encounter. For a moment, close your eyes, take a deep breath, and imagine that the person you love the most on this planet has passed away without life insurance. The first obstacle you’ll deal with is paying for the funeral. In 2015, the average funeral cost in America today ranges from $8,000 to $15,000. Does your spouse or loved one have that sitting in a bank account. It doesn’t sound like much, but most American’s simply don’t have it. And that leaves you, the grieving loved one, to come up with $8,000 to $15,000 within 72 hours of death. Can you imagine that?! That is a HEAVY burden to bare. NOW, think of a whole different scenario wherein the spouse or family calls the fallen loved one’s financial professional, and receives a hefty check which will cover the funeral, pays off any debt outstanding, and your day-to-day expenses for the next few years?! Um…Heck Yes!! Sign me up!! From any angle, anyone would agree that the minor cost of life insurance greatly outways the insurmountable cost of not having it.
OK, FINE, SO HOW MUCH SHOULD I HAVE?
Well, honestly, that’s a loaded question. Most folks buy a certain amount because it is either recommended to them by a sales man trying to make a quick buck or recommended by their human resources department, who no doubt cares, but has no business recommending how much life insurance you should obtain. As an example, most folks buy $50k or $100k or even up to $250k without much thought but, I will determine the needed amount thru a series of questions and conversations including lifestyle, goals, legacy, heck, even funeral style enter into this equation. And for everyone, the amount is different.
SO, IN SUMMARY…
Please don’t go into this blind. Do some research, and then find a financial advisor that you feel comfortable with, someone trustworthy, and start the process.
In a later blog, I’ll explain why TERM LIFE INSURANCE is the only life insurance plan you should acquire. Whole Life is CRAP! More about that later.
I would like to hear from you.