Life Insurance: Preparing for the Unexpected
Life is full of unexpected events…things that catch us off guard or that we didn’t plan for in advance. These are not fun to talk about, but are part of our reality. Death is one of those that things that is hard to talk about and even harder to think about, but for just a minute I want you to think about your family and those that depend on your financially. What happens to them if something happens to you? Or what happens to you if something happens to your spouse? It is hard enough to handle the grief without the added financial burden of losing part of your household income.
Life insurance protects those you love who depend on you financially. Money doesn’t take away the hurt or the loss, but it will help the beneficiary navigate the financial burdens that you currently have in place such as your house, car, kids college tuition, etc.
Here are some scenarios that we hear regularly:
“My spouse stays at home so we don’t need life insurance for her….” Well, let’s think about that for a minute. If your wife/husband is not staying at home you will now have an increase in expenses for daycare, housekeeping, groceries (you know he/she is spending time finding the best deal) and so much more. You are going to have to figure out how to do everything that she/he does on top of your normal daily routine.
“I don’t need life insurance I am young and healthy…” Yes, you are, but sometimes healthy people get sick and sometime young people die. It is hard to think that way when you are young, but think about the young kids your spouse would be raising alone or the forever home you just built that he/she will be left to cover the mortgage.
“I don’t have any debt and I have money in savings….” You may be in a position that you are self insuring yourself, but think about the lifestyle you live or the monthly bills you have for living expenses….will your spouse still be able to live the same lifestyle?
What is Life Insurance?
A life insurance policy is a contract with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured’s death. There are lots of options when it comes to life insurance….you can choose a term, universal and whole life insurance policy, but we recommend term life insurance.
Term life insurance is designed to provide financial protection for a specific period of time, such as 10 or 20 years with the premium staying the same for the life of the policy. It can give you the coverage you need at an affordable annual rate. Term life insurance does not build value over time and only has value upon death within the selected time frame. It is a great fit for most and gives you the coverage you need at a price that you can afford.
If you have any questions about life insurance or would like to talk through coverage amounts for you and your family just let us know. We are always happy to help you protect your family.