Photo by Ivan Samkov
I’m running behind but I can’t let September slip away without reminding everyone that it’s Life Insurance Awareness Month. If you’re reading this little blog of mine then you’re probably aware of my back story but if you’re not then you can read it here. It’s been 25 years since I lost Rick but I still preach every chance I get on the importance of life insurance.
Do you need life insurance?
The answer to this question for the majority of people, in my opinion, is YES!
Are you a parent? Get life insurance. Figure out how much you think you need and then double it. Do it as quickly as you can too. Life insurance is super cheap when you’re young and healthy.
Does someone else depend on you financially? Do you have a spouse? Maybe you’re helping with a parent or another relative’s finances. Are you in a partnership with someone else that you share expenses with (maybe a house, car, etc.)? Who will continue to help this other individual with their expenses and obligations if something happens to you? Get life insurance and make sure you designate them as the beneficiary.
Think you don’t need it if you don’t have children or your children are now grown? Will your spouse be able to continue your current lifestyle without your income? Do you want to leave behind a gift for your adult children or grandchildren?
Single and planning on staying that way? I would still encourage you to get life insurance. You’re most likely young and life insurance is very cheap for you right now. You never know if your life circumstances will change in the future. Get insurance now while you’re young and healthy. In addition, not doing so means someone you love will have to deal with the burden of paying for your funeral arrangements if something were to happen to you.
Life Insurance-the Basics
Here is my disclaimer. I am not an insurance agent, nor am I an expert in life insurance. I’m going to tell you what I have and then urge you to contact an insurance agent to see what works best for you.
I have had life insurance policies in the past that I was able to obtain through my employer at the time. This is the type of insurance we had when Rick died. There’s nothing wrong with this insurance and often your employer will pay for all or a portion of these plans as an employee benefit. The negative in our case was that the amount is minimal and not sufficient as a stand-alone policy for most. I think Rick’s policy paid 1.5 times his annual salary at the time of his death.
After Rick died, I purchased a life insurance policy through USAA. This was the company that I had my car and home owner’s insurance with. I bought a 20-year term life policy with a $500,000 payout for $250 a year. It was a quick application and a simple medical exam. This policy actually expires this coming April. My boys are out on their own now but still fairly young so I added an extra 15-year policy a few years ago. This way I have coverage until I’m sure the boys are more financially stable. I also plan on pre-paying my funeral arrangements before this policy expires so they won’t be burdened with this expense.
I’m paying nearly double the price for my new policy with only half the pay-out benefit. This is why I encourage everyone to buy life insurance while they’re young and it’s very affordable. The older you are, or if you have medical issues, the more expensive it becomes to buy.
Life Insurance-The Emotional Side
I get it, no one wants to think about about stuff like this. It’s like most insurance policies, something vitally important to have, yet you hope you’ll never have to use. Losing a loved one is terrible. The emotional trauma is just compounded when you suddenly have to figure out how you’re going to make ends meet on top of that, especially if you have children to worry about. Save your family some of that stress and make sure that money is not one more thing for them to worry about.
Do you have life insurance? Why or why not?
