When you buy a new car, you know you need auto insurance. When
you purchase a new home, you know you need home insurance. But when you have a
new baby do you instantly think about the need for life insurance? Typically,
no - although our lives and families are the most valuable things to us. So, why
do we put off buying life insurance? There are plenty of excuses we use, but NOT
planning for the inevitable can ultimately cause hardship for the loved ones who
survive us.
Here are a few common "excuses" I
come across. They sound reasonable to most, but that's because most of us only
know part of the story.
1) I have life insurance at
work
Boy, if I had a
nickel every time I heard this one...! Buying
into a group life insurance can be economical, the premiums are fairly low and
sometimes completely paid by the company. But like your medical or dental
benefits, group life insurance is tied to your employment in the company. So,
if you leave your job you also loose the group life insurance coverage. The US
Department of Labor says people between the ages of 18 - 38 change jobs an
average of 10 times. Even if you were able to stay with the same company for many
years, very few of us will work all our lives. And trying to buy life insurance
when you're older can cost you more.
Another thing to consider is the
amount of life insurance you get. Does the death benefit/amount in a group life
insurance adequately cover your personal financial needs or final burial
expenses? You don't want to be under-insured on life insurance, so it's always
best to talk with an agent who can help you assess how much coverage is enough.
Don't let financial burdens way down your family.
2) I'm still young and healthy,
I don't need it yet
Try selling life insurance
to a 22 year old male who'd rather spend his weekly paycheck on music and fast
food. Very tough, but still very necessary. The ideal time to buy life
insurance was on your last birthday. Why? Because your age is a big factor in
your rates, so the sooner you can lock into your young adult hood, the better.
Plus as we age we are prone to develop medical conditions that may impact our
eligibility and rates. According to the American Heart Association website, ‘almost
two-thirds of Americans currently use medicines: 49 percent use prescription
drugs and 30 percent use nonprescription medications'. Most of us will be
dependent on some form of medication to prolong our lives, cure an illness or
suppress a disease. It's a harsh statistic to accept, but a real part of our life.
Trying to purchase life insurance after a medical condition can be difficult,
better to be proactive before any potential issues arise.
Another reality is - we don't know when our number is up. We
can go at any time, at any age. Life insurance is not just for the old,
middle-aged or young - it's for everyone.
3) It costs too much
"Auto
insurance - $30 per month, home insurance - $50 per month, life insurance - priceless!"
I've seen first hand how NOT having life insurance can hurt a family. Plan now,
to leave a financial income for your surviving dependents and provide them peace
of mind - there's no value that can be placed on that.
Life
insurance costs will vary and so do the rates and plans, you may be surprised
at how inexpensive coverage can be. The best way to find out is to get an
actual quote, then make a decision.
So, if you currently don't have
life insurance - what's your excuse? What's it going to take to get you to step
away from your computer monitor and call an agent for more details? Don't wait,
don't procrastinate - it can be costing you more every year you put it off and
could hit your family even more, when you're gone.
