(Shameless Plug #34)
I have worked in the insurance industry for years and have heard the many tragic and horrible stories, related to lack of preparation, concerning life insurance. People fool themselves into thinking that tragedy will not happen. This, along with a host of factors leads them to believe that life insurance is not beneficial. Unfortunately, that is wrong thinking.
Procrastination, delay and wait are all factors that work in the insurance company’s favor. The older you become, the more expensive insurance is. Get Life insurance early for your kids. More than just a 10K Gerber plan. The younger you are, there the better your rates are and the more options you have access to.
There are affordable options that people can shop around for. Some people believe that a 50-250k policy from work will address their family needs. If that is the case, then make sure your policy can sustain your family’s needs for a defined period of time. I usually suggest to clients, to look at 3 to 8-year time period, pending each individual circumstance. Simply combine what you have in life insurance and savings and divide that number by the amount of years you want that income (because it will replace yours) to continue. You can even divide your annual number by 12 (monthly) to give you a more defined picture. Once that is done, I then have them divide that annual number by the amount of people in their family. This method provides a simple but granular view for what you should consider when shopping for insurance.
You may find you are over insured or you may find that you are greatly underinsured (as many Americans are) A 2013 article from Anderson, Dahl and Gilbert, in LifeHealthPro, discussed what the article called a coverage gap in America. In 2013, 44% of Americans, had no form of life insurance coverage. I am sure that in 2016 that number has not risen much, and it may have declined a little. No matter what your income, lifestyle or financial circumstance, life insurance is an important aspect of any financial, will, or family plan. Please consult an attorney and a financial planner to help you.
I woke up one morning and never thought it was going to be the last day that I saw my wife well. She passed away a month and a half after that. Thank goodness we settled on a life insurance policy years prior. I thought doing it would be a benefit to her. I did not expect or want it to be the other way around, but life can be funny like that. Needless to say, between what she had from work and what we bought (it was a real struggle but it is financially worth it), it is also cheaper than cable.
Today, people need to look at the variety of options available Term, Whole or Guaranteed life maybe some ways to look at providing insurance options for your family. Or do what some of my clients do, and start cutting family members out of your will. (I do not suggest that or condone it at all). If you need help or would like to discuss option, contact me John Clark (973) 518-0676