Do I need Life Insurance? – Protect Your Most Valuable Asset
The purchase of a life insurance policy means you are protecting your most valuable asset.....your income earning ability.
When I ask a client living in the Denver area if they need life insurance, the usual response is ‘NO.’ Then I ask the spouse, ‘Would you be able to support your family on your income alone?’ The answer is almost always ‘NO’ as well.
Being asked the question ‘Do you need life insurance?’ means the person needs to contemplate their own death which runs contrary to our desire to live long and prosper and gives most people an uneasy feeling …...so they avoid the topic. But the consequences to the remaining family members can be devastating. The Center for Disease Control has some interesting statistics on this topic.
Several years ago, my neighbor a healthy 43-year-old husband and father suffered a massive, sudden heart attack while taking a shower. The bathroom was locked and by the time they were able to break the door down, he had passed. He had been the sole breadwinner and left behind a widow that hadn’t been in the work force for 10 years, a sixteen-year-old son and a 5-year-old daughter. They had a small $50,000 life policy issued at his workplace which lasted the family about 9 months. Social Security provided the family a small benefit, but not near enough to replace his full income. Three years later, his wife is now almost financially destitute. Every year she is getting deeper in debt as she is borrowing money to try to keep from loosing her house while trying to find work that pays enough to support her small family. I've always wondered if my neighbor ever contemplated his own death and the consequences it would have on his family??
Life insurance is meant to replace your income in the event of your death. If you have dependents 'for a life time' such as a non- working spouse or disabled descendants; or if you have dependents 'for a temporary time period' such as supporting children until they become independent (usually somewhere in their early 20’s) …. you need life insurance.
The cost of life insurance has declined over the past century due to better diet and healthcare technology. People are living through diseases that were once a death sentence.
Once a client has made the decision to purchase life insurance, the next step is decide on the death benefit which is the amount the policy will pay out in the event of your death. My philosophy is any amount of life insurance (death benefit) is better than none and a licensed insurance agent can help you determine the proper policy type and death benefit. The hardest thing about purchasing life insurance is contemplating the consequences to your family if you die, the rest of the process is easy, and the minimal cost of the insurance will help secure the financial stability of your family.
Our licensed agents are here to help figure out the best options for your situation. Why don’t you give us a call?