Archive for July 28th, 2007
If people didn’t die, or if people knew at birth exactly when they would die, the need for life insurance would certainly be looked at differently. The truth is that we all know we will die and unless I am mistaken, mortality tables would show that approximately half of us will die prior to the average mortality experience (and half after). There are life insurance products that directly address both of those experiences.
Probably the largest need and the most concern is with premature death. When I talk about premature death, I’m not talking about someone who almost, but didn’t quite, make it to the average mortality age.
Premature death is the one we all remember. If it has not been a close family member, I would be surprised if any of us hasn’t been a little shaken by news of someone we knew dying in their 50’s, 40’s, 30’s, 20’s……..teens. Think about it. Remember that feeling in your stomach when you heard that a friend, a way too young friend, died of a heart attack. What about when a friend’s teenage child is killed in a car accident. Or a friend of a friend who was diagnosed with cancer at age 48 and died within weeks.
It seems like these events come just frequently enough in my life that I have long since given up any thought of immortality. The best that I, or you, can do is to hope for a long life and plan for the possibility that it won’t be.
Bottom line. Don’t be worried about it, but be realistic and prudent. Unless you just simply don’t have a responsibility in the world and it’s OK if they just put your remains out with the trash on Wednesday, get life insurance.
July 28th, 2007
When doing a needs analysis for life insurance, one of the most critical factors is replacement of income. Normally when we think about replacement of income we are looking at what it would take to replace $25,000 or $100,000 a year. In the case of pro athletes, with income often ranging from $500,000 to millions per year, the need for substantial life insurance is paramount.
I know here in Colorado the Denver Broncos have lost two football players to untimely deaths in the past year with the shooting of Darrent Williams and the apparent cardiac death of Damien Nash after playing in a charity basketball game. Both of these athletes were in their 20’s and highly paid. Both had bright and long careers ahead of them.
It happens all the time, whether it’s an actual sports or traning related death, or, just like your average person, an untimely death due to health issues or an accident. The big difference is the size of the lost income. It is the size of the policy that it takes to replace lost income that is the challenge. When you start looking at life insurance policies in the $25,000,000 to $50,000,000 range, you had better have the right independent agent working for you.
I know it’s all relative. If someone is used to living off of $50,000 a year, or $1,000,000 a year, the loss of the income is makes it virtually impossible for those left behind to continue on with a lifestyle they are used to.
Where there is a need, there is generally a person or team to meet those needs. Whether it is income replacement for an accountant with diabetes, or income replacement for a professional baseball player or football player, the combined experience that I have with Rich Fuller can provide the right products as well as any agency in the country.
July 28th, 2007
A study done by the Georgia Department of Health showed that diabetes was the 7th leading cause of death in their state. The good news noted in an article by eMaxHealth was that with only moderate lifestyle and diet changes diabetes is preventable and in some cases reversible. I don’t need to tell you how important it would be from a life insurance standpoint if someone could actually “cure” their diabetes.
Even a well controlled diabetic with no collateral health issues will likely pay twice as much as a person without diabetes. While underwriters would likely require some time period of sustained control to accept that the diabetes has been reversed, eventually even the most skeptical of them will have to accept that it is not a health issue any longer.
The study should be of significance to anyone that doesn’t exercise and is overweight. It points out that with moderate exercise and a decrease in weight of 5%-7%, diabetes can be prevented or delayed. This is significant when you consider that someone who has type 2 diabetes, on average, will live 8 years less than if they didn’t have diabetes. This, obviously, is also the reason that underwriters are careful to get a complete picture of a diabetic applying for life insurance before they approve it.
The University of Illinois offers some great resources for diet. Maybe someone can offer a link to an exercise program. I know a lot of exercise programs are rather intimidating.
Bottom line. Making the right choices can lead to a healthier life and lower insurance rates.
July 28th, 2007
