The short answer is, maybe. I know it’s a cop out, but let me explain.
There are a lot of factors in determining what/ why/ how/ if you need life insurance . It really all boils down to 3 things. Do you have people , animals or anything that is dependent on you. Do you have enough for final expenses? ( or don’t really care if family members have to pay up), third does it make you feel comfortable having something in place.
Being in the insurance industry about 10 years. I have written over 3000 life insurance policies , talked to over 10,000 people on the phone and have heard almost every situation out there. I really started to get into the more advisory role about 2 years back. Making a difference in peoples lives, saving them money and putting them in the best situation possible, is very important to me. I love answering questions and if you need anything please let me know.
People Who Depend On Your Income
Let’s get back to the topic, I will break it done a little better for you. Number 1, if you have children in the home and you do not have life insurance, it should be illegal. I understand that some people can not afford or even get life insurance, because of health issues. This is the rare exception. And I mean rare.
We can insure people that have heart issues, PTSD, Disability, cancer, kidney failure, diabetes and so much more. It is hard not to get insured now a days. And when I am talking Life Insurance , I am talking Life Insurance that covers health and accidental deaths. Anyone can at least get a accidental policy for $15 a month to at least have some coverage.
A lot of people forget about other people that depend on you. When I mean you; I mean your income. You can not be replaced as a person; however your income can taken care as well as your home can be paid off. Lets face it, you are not getting life insurance for yourself, you will never see it. Its for the people that you love and depend on you.
How Much Term Life
My simple calculations are as follows, how long will your dependents need your income to survive? So if you are a single dad, like me, and have a 9 year old child, like me, what would you need? I would say my income multiplied by the number of years he would need it. I personally took out a 20 year term life policy when he was born and I’m done. He’s my obligation to raise.
When I decide to get married again, which isn’t likely, I will have to review my life insurance. Questions would be does she/he work? If so, would she/he need my income to survive? If so how much. It’s really just a simple formula for what you need. A lot of life insurance agents out there will make a big deal about what you need but it isn’t that hard. Years + Income lost/needed.
Remember, If you have dependents the best life insurance to get is a term policy. I always like to explain the difference in term policies and whole life. But I will get on that topic on a different day. I like to say you get the most ” bang for your buck ” with a term policy.
Get the coverage while you need it and get on with your life. So what you should get from this section is term life insurance is super affordable, and if you say you can’t afford it you need to find an experienced agent to get you a better price.
Do You Have Enough For Burial
If you do, or do not care if your family members have to do a car wash or gofundme account, please skip to the next section. Many people say I do not care what they do with my body when I die. I tell them that there will still be some expenses when you pass no matter what, and they don’t care. Even a $20 policy was too much for them. I feel for their family.
If you do not have anyone depending on your income you might only need burial insurance, final expense insurance, or what I like to call a no cash value whole life. There are policies that will take you to the age of 90, 95, 100 called a GUL, guaranteed universal life. This is basically a term policy that takes you to those ages. The average funeral cost around the nation is going for about $15,000. So if you do not have that amount of money sitting in a liquid account, you might want to consider life insurance. And again they are really affordable, but try to get them when you are fairly young.
Example; say you are 50 years old and your term life policy just ended. The last of your children are out of the home. You have done your job, they are raised. You are most likely broke, from raising the kids , but you are still young. Life insurance is still affordable at this age, you can get them for around $45 male , $24 for a female a month. You don’t even have to be in the best of shape. Just don’t smoke and don’t have any major health issues. You can be fat, skinny , ugly and get these policies.
However , if you have the money sitting around in a liquid account, get rid of the policy you are paying on and use that money for leisure activities. There are exceptions to this rule, if you have a policy that you have had for every and it is a very small premium, please keep it. It will help your family.
Next thing , I want to discuss is if need a burial policy, do not get a policy that will go up. I see game show host selling life policies that will increase every 5 years. I heard yesterday, that the agent told her that it would only go up $3 a month when she hit 70.
OK, I could be wrong about this because I refuse to sell any type of increasing 5 yr term policies disguised as whole life policies but I am sure it will go up a lot more than $3. With modern technology we are living better and longer, if you get an increasing premium term that ends at 75, you are probably going to outlive it. Spend the extra money now, I am sure you can afford the extra $10 a month.
People That Have To Have It
This is for the people that have to have life insurance, yes there are many people that need it. I say it is like when you are a child and you need that teddy bear, blanket, knife to feel safe. I usually go through my needs analysis and we come to the conclusion that they do not need life insurance. Usually there is a long pause and confusion.
They know I sell life insurance but when I recommend that they put what they were paying premium it crypto they are confused. I will tell them straight up, you don’t need it. But if they insist, it’s usually they have always had and will feel better with something, or it’s just to get a buffer so they do not have to liquidate any assets. Which is funny because they have plenty of money in the bank. At that point people know what they want, how long they want it.
Sometimes you need life insurance and sometimes you don’t . It is basically simple, who depends and you? If you were to get hit by a bus tomorrow could they live the same way as they do now. If they can’t give me or any other knowledgeable person a call. Most people will have the exact same companies for you to go to, but what makes the difference is going to the right company that will be the least expensive for your situation. I have been doing this for a long time and I really enjoy helping people insure their families and loved ones. I have seen both sides of the dying with life insurance and without. Loved ones of the people with life insurance will never forget how much the deceased loved them.
Thanks for reading, my first blog of many, they will get better. Cheers.