I know there is logic galore for putting off the purchase of life insurance until just the right time, or until you’re just the right weight, or until your cholesterol is just the right level…..and the logic fails completely when you drop dead before you reach the optimal time.
My nephew has been working with a client for the past year and a half. The guy wanted to start planning early to supplement his retirement with life insurance, and in spite of the suggestion that there really is no time like the present to put life insurance in force, he wanted to put it off and have the policy go in force concurrently with his retirement taking effect.
We don’t push around here, but we do make sure that people understand that postponing buying life insurance is just a bad idea. You never know what health change could change your grand scheme.
Well, the saying goes that timing is everything. In this case it turns out the timing was absolutely nothing. The man was very specific with my nephew that he wanted a call today to get the application started. The call was made and his widow of about 4 hours answered the phone. He died of a massive heart attack earlier today.
The only thing his widow can count on today is that, since he hadn’t retired yet, he did have a $50,000 policy at work, about equal to one year’s salary. She isn’t sure she will get any of his retirement. She knows he planned to get an additional $500,000 but never did anything about it. Any man that dies without adequate life insurance should have to come back and look at the mess he’s left behind.
Bottom line. A year and a half ago this person knew they needed $500,000 of life insurance. The need was there then, but in his mind the timing wasn’t right because he never considered the thought that he might pass away before he got there. I’ve said it so often, put something in force and then, when the timing is right, tweek the product so it meets your needs. He could have put a 10 year term insurance policy in force for pocket change and if he was still around right now he would be working with my nephew to apply for a longer term policy to supplement his retirement.
A show of hands. Everyone out there that knows for a fact that they will be alive a year from now, raise your hands……..and all of you that raised your hands, keep them up if you have never had a friend, acquaintance or family member die suddenly and prematurely. Thought so. Don’t be foolish. Protect your family now.