Wayne Texeira Marketing Director, CFMP, AINS, AIS, API
Economic conditions over the last few years have continued to present financial challenges causing most of us to take a closer look at our financial situation...both current and future. Meeting monthly commitments can be a challenge, but, it's still essential to plan for the future. In addition to saving for retirement and other needs, you need to consider the unpleasant possibility of how your loved ones would manage if you were to die prematurely.
Almost everyone knows that they need life insurance, but statistics show that many people haven't addressed their life insurance needs. And, many who have purchased life insurance fail to update their plans as needs change which results in their being under-insured.
I purchased life insurance when I was in my mid-20s right after I bought a house. In fact, I purchased it through Murphy Insurance Agency about 18 years before becoming an employee. Perhaps, my parents having life insurance and encouraging me to get it made the difference in my decision, which I've never regretted.
Recently, I was speaking with friends, who have two children, and the conversation about planning for the future came up. I asked about where they had purchased their life insurance. They said they didn't have life insurance yet, but it was on their list of things to do. I was really surprised because these are two very smart people, and they knew they should have it for their kids sake.
In general, people want to do the right thing and never want to imagine their loved ones suffering a financial hardship, so why do so many procrastinate and delay planning? Here are some reasons and responses:
"I'm in good health. I have plenty of time." Accidents happen and sudden illnesses occur. None of us wants to think about dying. If you're young, you feel invincible. We all hope to live long and healthy lives, but look around and you know it that something unexpected can happen. An illness could make you uninsurable. No one has a crystal ball to know when something will happen you just have to prepare in advance.
"I'm single. I don't need life insurance." Certainly, you may not have a loved one that relies on your income, but you may in the future. Health can change, so getting covered now is wise. Also, the younger you are when you first purchase life insurance, the lower the annual premium.
"I can't afford it." Certainly it's a commitment, but your loved ones are worth it. If you sat down and looked at what you spend on coffee, eating out for lunch/dinner, going to the movies or other entertainment, you might be surprised that cutting back a little would allow you to afford life insurance. For example a 35 year old, nonsmoking man can get a $400,000, 30-year term life insurance policy for $33.32.*
Perhaps, the main reason for procrastination is that no one wants to think about dying and hence the delays. How often have you said, "I'll take care of that tomorrow." But, what if tomorrow doesn't come?. It will never feel good to think about dying, but you'll feel really great after you've met with a professional, purchased life insurance and know that your loved ones will have some level of protection should something happen to you.
Pauline and Jean from our Financial Insurance Team are easy to talk with and are glad to meet with you to learn about your situation and your needs. They make the process as easy as possible.
*Rate based on SBLI
nonsmoker preferred plus rates as of March 30, 2013.