Here’s how a traditional life insurance sale goes:
“Let’s do an analysis of how much life insurance you need.”
Imagine being a life insurance salesperson on the “Miracle on the Hudson” plane just as the pilot Sully said: “Brace for impact” What if you grabbed the speakerphone and said, “Anyone want some life insurance? I could get it for you in one second on my app”
Then you ask those who put their hands up: “Lets do an analysis on how much do you need?”
You can imagine the desperation and urgency as people shout out, “Give me as much as I can get!”
When you look at it that way, then you realize that Life Insurance is not a “Need-based” product.
It’s a WANTS product. How much do you really WANT for your family to have if you were going down on the plane?
Do you want your wife and kids to be struggling for the rest of their lives because dad worked out what they would need in case something happened to him, or would you prefer that they lived the life you had dreamed that they could while you were alive?
I know that it seems strange to look at it that way, but it gives us a good perspective on what life insurance is all about.
It’s not about us, it’s about the people that we leave behind.
Most decent people would still want the very best for their spouse and kids if they are not around anymore. If we could not provide for them, then surely we would still want them to have resources and be provided for.
The only way to make that happen is to ensure that we have life insurance coverage so that what we meant to have happen while we were still alive, could still happen after we are gone. Life insurance is the only thing that can ensure that what we want for our family will happen when we are gone.
doing the right things now
I encourage ALL couples to have insurance coverage. One of the problems initially is that when we start out there is often not a lot of money to spare. For most couples that are earning a reasonable living, that should not be an excuse – it is a matter of prioritizing the most important things.
Term Life Insurance is REALLY inexpensive when we are young. For between $25 and $50 a month, most people under between 25 and 40 can get Term Insurance for at least $1,000,000 which will come to your family and not be taxed. Remember though that the problem with Term Insurance is that it ends when the term is up, and as you get more vulnerable as you age. New premiums at older ages could be really pricey.
For other families, it might make more sense to invest in Permanent Insurance that would definitely be there whenever you pass away. This could be structured in a number of beneficial ways with additional high cash value as your emergency fund. In this case, the premiums could be higher initially, but the benefits far exceed those of cheaper short-term insurance.
If you would like to discuss the options that are best for your family, your wants and for your budget, feel free to contact me to design something specifically for you.
A few years ago, I recommended life insurance to a friend who had recently gotten married. He knew that he wanted to get life insurance but procrastinated. A few months later he died in a crash, and his widow found out a few weeks later that she was pregnant. This is something that will stay with me for the rest of my life.
Please let me know if you would like to meet in person or via Zoom to make sure that your financial plan is the best one for your family.
About Dave
Dave Coen is a Retirement Income Certified Professional (RICP®) and Financial Advisor with SageView Advisory, and CEO of College Planning America. Along with his retirement financial industry experience, he is a College Planning Specialist. He works closely with individuals and families to provide comprehensive financial planning that addresses all elements of their financial picture. Learn more by connecting with Dave on LinkedIn. Please feel free to contact me if you would like to discuss how we can help you with your family’s plan either in person, over the phone, or on Zoom
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