Whenever anyone asks me what I do for a living, I jokingly tell them I talk to people all day about their own demise. While I jest, this is essentially what an independent life insurance agent does. Life insurance is the business of helping clients plan for the inevitable. And that inevitability is that we’re all going to be gone one day. Some of us sooner than others. While no one likes to think about that, the conversation is necessary if you want your family to be protected even after you’re gone.
If thinking about when or how that day will come fills you with anxiety, you should treat life insurance like ripping off a bandage. Get on the phone and get it over with. I promise the conversation is never as dreadful as you expect, and can actually be enjoyable with the right agent. To help even more, here are three things to consider that just might have you picking up the phone today to talk to a life insurance agent like the ones we partner with at Little Family Security.
Buying Life Insurance is Not Tempting the Grim Reaper
I can’t count how many prospects I’ve called about life insurance who tell me, “I don’t plan on dying anytime soon.” The idea being that by securing a life policy, these people are somehow inviting the concept of their life ending. Let’s settle this score. Buying life insurance is not akin to holding a red cape in front of a bull. The cloaked figure holding a sickle that for generations has been the symbol of death is not waiting for you to think about death to make an appearance. Rather, securing the right policy is the best thing you can do while you’re living for the protection of your family.
Buying life insurance is no different than stocking canned goods and water in the pantry in case the power goes out for an extended period of time. Or digging a trench around your home in areas susceptible to extreme flooding. It’s the proverbial planning for a rainy day. And while the subject can be morbid, it’s a necessary fact of life that funerals, caskets, and even cremation can be expensive. Planning for those expenses now can help your family sleep easier, and give them the best peace of mind.
Life Insurance Gets More Expensive the Longer You Wait
A common myth is that life insurance is best bought when you’re older, and after you’ve suffered from a few health problems. This is far from the truth, especially when you understand how life insurance companies calculate their rates. It’s all based on risk.
Life insurance companies like Transamerica and Mutual of Omaha employ stringent risk guidelines that dictate the rates for all of their various products. A young, healthy individual, for example, poses a lower risk to the company. That person, therefore, might be presented with a low premium for a significant payout. Here is where your term life insurance policies come into play. I’ve seen people in their 20s obtain death benefits of a couple hundred thousand dollars for as little as $25 per month. Your rates may vary.
On the other hand, a person who is older and who is on a few medical prescriptions may pose a higher risk. A 75-year-old who has suffered a stroke and heart attack may have very limited options for term life insurance, if any. Likewise, that individual will end up paying a higher premium that is directly related to their level of risk.
This means that you should buy life insurance as soon as you’re able, because you never know what life will bring, and you could end up saving hundreds or even thousands of dollars over your lifetime by doing so.
Your Beneficiaries Are Relying On You
When we pass, our souls depart, leaving behind the bodies we used as vehicles to get through this life. This is a simplistic way to think about death, and may help you stomach the conversation when you pick up the phone to talk to your agent. These vehicles need to be dealt with in some manner. They either need to be buried or cremated. And no, they can’t just be thrown on the burn pile out back, as one of my veteran prospects jokingly said the other day.
Burial and cremation can cost multiple thousands of dollars. That’s not including funeral costs, and other expenses, such as the paying off of debt you may leave behind. Mortgage protection life insurance, for example, can provide a death benefit that your beneficiaries can use to pay off the mortgage, helping your family remain in the home.
Whether you’re paying for final expenses like a funeral or the mortgage, your beneficiaries are relying on you not to leave them in the lurch. This can include your spouse, children, or other dependents, and even your parents if you outlive them. Anyone who would be responsible for covering any costs after you’re gone will rest easier knowing you’ve taken steps to ease their financial burden. This is where life insurance comes into play.
Not only that, but life insurance can help you build generational wealth. The right policy can set the next generation in your family up for a more successful future. For younger families, life insurance can also help replace lost income, giving a surviving spouse or dependents financial breathing room when they need it most. This is one of the ways to leave a legacy behind, even though leaving a legacy isn’t always about money.
Speak to an Agent, Even if You’re Young and Healthy
No one likes thinking about the time when we’ll no longer be living on this earth. We wake up and go about each day as if tomorrow is always promised. But it’s not. Anything could happen. Not to frighten you, but open up your favorite news site and look at all the people who woke up that day not knowing it was their last. Even if you’re going to be here for three or four decades longer, life insurance can still be one of the most important things you do to protect your family’s financial future, and it deserves attention now instead of later.
If you want a conversation about life insurance that isn’t depressing and that you actually enjoy, you can’t go wrong by talking to an independent life insurance agent at Little Family Security. Call (682)802-2276 or visit www.littlefamilysecurity.com to schedule a free consultation. You and your family will be glad you did.
