Insurance: Not Thrilling but Important.
May 15, 2014 § Leave a comment
We generally know that life insurance is important, but it can seem confusing. Not to mention boring. Not boring to me, of course. But I can see why in your busy life and with your schedule, this might be a topic that you would rather deal with at another time. But when, exactly, will you figure this out and take the time to at least get an overview of this exciting subject? After all, this is pretty important topic for your loved ones, especially the little ones in your life. Maybe you could grab an adult beverage and pull up a chair. Let’s chat.
Who needs it? – Insurance. Who needs it? One web site answered the question with more questions. If someone depends on you financially, that may be a good indication of a need for life insurance. Do you supply income to anyone? Do you help with the expenses of a family member? Do you own a property in which dependents live? Don’t take for granted all the myriad ways you help people. Folks need you, both because you love them and also possibly because your contributions have a financial impact on their lives. How would their situation change if something were to happen to you, my friend?
You can see that these important questions may open a bigger conversation. Do not be overwhelmed. Be aware that in seeing this larger picture this may be where insurance may be beneficial to you.
How much? – Suffering the loss of a loved one is a terrible tragedy. It takes years to recover and we are always changed by the loss.
However, insurance at least allows you to LIVE, with a roof over your head, in the same school, participating in the same activities, even after that terrible separation. Being able to continue to life in the same surroundings and able to have the freedom to spend more time with the kids and not worry about missing work, these are the reasons for life insurance. To help you keep your lifestyle when someone you love is gone.
No amount of money makes up for their loss. But what if, because of their loss, you also lost your home, the kids had to change schools and you had to take another job? Having money troubles after such a devastating loss can be terribly hard.
So how much do you need? What lifestyle do you want to maintain? Few of us can afford every possible contingency. But having some idea of what items are essential to help the family be stable and possibly to be cozy are figures that can be estimated. And you need to do this to plan for those people who depend upon you, loved adult. They need you to be pragmatic and do what you can afford to do to take care of them – in case.
What kind? – There are several types of life insurance. Term insurance is for a period of time: ten, twenty or thirty years are common periods. Term insurance is often less expensive than other types as it is for a specific period of time. Two other types of insurance fall into the category of ‘permanent’ life insurance. Those kinds are whole life and universal life. These types of policies build cash value and remain in effect for the entire life of the insured (or until age 100) as long as the premium is paid. Lots of details about how these vary but we don’t have time to discuss them here. You should speak with an insurance professional regarding your individual situation.
Now what? – Talk to an insurance agent. Know that all insurance agents need to be licensed by the state. And whether you use a local agent or a person who you’ve never met via an online option or phone, the same rules apply to them. Since we are all licensed in the same way the difference, is service. If you work with a local insurance agent they live in the community, have their kids in the same school and may understand your family, and their needs, more personally.
If you suspect you need insurance, get a quote. There is no obligation and getting started on this journey could really help your family. Drink up! (Additional disclosure: Health and other non-variable insurance products are not offered through Wall Street Financial Group, Inc. CR10001)