“Let’s talk about your death.” Now that’s a real conversation stopper.
Imagine how uncomfortable you might be saying this to someone. Yet, as an insurance agent this is exactly what we must do to help people protect their loved ones’ future with life insurance.
While we’re being honest, it’s called life insurance, but truthfully, it’s death insurance. Now that’s a real winning product name isn’t it? And, to make it even more challenging, the purchaser knows he/she won’t benefit from it personally…who likes to buy things that they don’t get to enjoy themselves?
Ultimately, the appeal and benefit of life insurance is that you truly love your spouse/partner/children and would never want them to suffer because of something you did or didn’t do. However, despite our love of family, 42% of Americans lack life insurance and about 50% of those who have it are covered for $100,000 or less according to a recent bankrate.com survey.
Most of us have tight budgets, yet still find ways to have a little fun. Admittedly, fitting life insurance into your budget may require making some small sacrifices, but it’s worth it. Are you willing to give up going out for dinner a few times a year or make that daily cup of coffee at home instead of buying it to have peace of mind knowing those you hold most dear have a financial safety net in the event of an unexpected tragedy?
Maybe it’s the natural human aversion to thinking about our mortality combined with various myths about life insurance that results in procrastination and avoidance of this topic. If you’re among those who have avoided addressing your life insurance needs, we’d like to encourage you to take action by dispelling some life insurance myths:
- Life insurance is expense. Cost is often given as a reason for not purchasing life insurance; however, 80% those who give this reason overestimate the cost. There are a wide variety of policies to fit different needs, and term insurance policies are extremely affordable. A $200,000 20-year term policy for a healthy non-smoking male, age 35 costs about $150 a year.
- You have health issues…you won’t qualify. While good health certainly makes life insurance more affordable, having a health condition doesn’t automatically mean you’re uninsurable. There are companies that write policies for a range of health conditions if they are under control; however, they will be more expensive and often have lower limits.
- Life insurance provided by your employer is enough. Even if you enjoy this benefit at work, it may not be enough to cover your needs. If you leave your job, you may lose your life insurance, and if your health deteriorates, you may find yourself ineligible to purchase a policy at a later date. Even with a conversion option, it may be more cost effective to purchase your own policy now.
- Buy term insurance and invest the difference. Term insurance is a great value and good for covering debts and other expenses with a specific time frame. Yet, a permanent policy may be more advantageous if you have needs that require coverage for your entire life. If you had to purchase another term policy later in life to extend coverage, it may be more cost effective to purchase a non-term policy at the outset.
- You’re young and don’t need to be concerned about life insurance yet. When you’re young, the annual premiums are less expensive. While you may be paying a premium for a longer time, the lower premium can fit into your budget easier as you get older. Also, the longer you wait the greater the chances of having a health issue arise that would make it more expensive or challenging to get coverage.
- Your single and don’t have dependents so you don’t need life insurance. Even if you’re single, you probably have debts that could be a burden to your family or executor. Also, just because you’re single now, doesn’t mean you will be forever. Getting life insurance now may be more affordable than waiting.
- Only breadwinners need to be insured. Stay at home spouses provide a lot of value maintaining a household and providing child care. The cost for a surviving spouse to pay someone to handle those tasks could cause a financial strain. Both adult contributors to a household should be insured.
- Shopping many different agents saves money. Every company has different insuring criteria, which makes the process time consuming and challenging to undertake on your own. Even talking to multiple agents can be confusing as you’ll have to make sense of all the differences. By working with one trusted agent that deals with a large number of companies, they can do the work for you and use their expertise to narrow it down to the best options saving you time and money. At Murphy Insurance, we work with over 50 different companies when searching for the best solutions.
If you’ve never talked with an insurance professional about life insurance, you owe it to yourself and your loved ones to get the facts. Don’t make assumptions about affordability or options….Don’t wait until it’s too late. Reach out to us so that we give you the information you need to make an informed decision.