How many times have I heard that? The conversation goes something like this. “Mr Smith, based on your health information it looks like we should be able to get a $1,000,000, 20 year term policy for $1200 a year, about $100 per month.” Mr Smith counters with “Well, as young and healthy as I am, it seems like I would be way ahead putting that money into an investment or retirement plan rather than just throwing it away on insurance I probably won’t ever need.”
Sometimes it just isn’t easy getting people, and especially healthy people, to see that this isn’t about them. It’s about the family that’s left behind. They say “what if I don’t die during the term of policy? I will have wasted all that money.”
In the mind of a responsible person is the idea that if they outlive their term insurance, then it did its’ job and they are still here enjoying the family they were protecting.
For those who really do care about protecting their family, but really can’t get past the idea that they might “waste” some money, there is always permanent coverage like universal life. It will guarantee that you won’t outlive the insurance by guaranteeing the policy for life.
Another avenue would be return of premium term insurance. It gives you the protection you need for a set number of years and if you don’t die before the end of the term, you get all your money back. Free Insurance!!
There really aren’t any good excuses for not carrying adequate life insurance. It’s the adult, responsible thing to do if someone in your life would suffer if you died prematurely.
Mark Twain once said, “The man who dies without adequate life insurance should have to come back and see the mess they created.”
This post is somewhat dated. Life insurance underwriting is changing and evolving continually. For more updated information check out some of the key word links. If you have a specific question or topic you need information for do a search. If you don’t find the answers you need contact me and we’ll make sure you get the information that is important to you.