This is one of the most frequently neglected forms of insurance. Some of the most common reasons that I have heard are: I have coverage through my employer. I don’t have the money to pay for it, it’s expensive. If I die, I am not going to be here so what do I care. My spouse could marry someone else, I don’t want to give them a lot of money. I am young, that’s not going to happen to me for a long time. Some people have a superstition that if they take out a life insurance policy they will die.
I truly believe that life insurance can be summed up in one word, LOVE. When you love someone, whether it is your spouse, children, parents, an organization, etc., a person wants to provide for them when they are not here to do it in the future.
Life insurance does not protect life, it basically replaces income. In today’s economy usually both the husband and the wife have to work to provide or pay the expenses. Can you imagine the problems that occur when unexpectedly one dies and leaves the other with less income and all the responsibilities?
So what should you consider when buying insurance? What will it cost to pay off your debt, your house, credit cards, cars, student loans, remaining medical expenses, burial costs, etc. if you were to die at this moment? Then there are other considerations, the cost of your children’s education. Other future expenses may include, your children’s weddings, business loans and or expenses, charitable giving to your church or an organization. Finally, what will it cost to supplement your loved ones left behind without your income, and how many years do you want to be able to do that for them.
You need to consider what type of insurance, permanent, term or a combination of both. There are many types of plans that fall into these two categories. Will it be for basic protection, and or income growth for retirement? A lot of people don’t realize that most of the plans written today have additional benefits that were not available in the past such as a living benefit paid out prior to death to help cope with the expenses of the final months of a life threating illness.
I have been there to help families and delivered large checks to them when loss consumed them and hope was bleak. I can tell you that planning ahead can make a big difference, a life changing difference for those who are left behind.
I have also seen the hardship for those families who have been left behind without the benefits of any life insurance. It is a great relief to know that your loved ones will be provided for in your absence. Life is uncertain and death is not a popular subject.