May Blog

Life Insurance Isn’t for Me

Last year I ran into a man who lost his wife to illness.  He was distraught and had trouble comprehending what just happened.  It was the worst day of his life.

Last year I ran into a man who was approaching his retirement and was wondering if he was going to be able to retire.

Last year I ran into a single mother of 3 who was just diagnosed with breast cancer.

Last year I ran into a couple that could not believe their life insurance premiums were going to be more expensive than they paid 10 years ago, and refused to get it.


How many of you know people like this in your life? People just like you and me.  We can all sit for a minute and think of 2-3 cases of the above scenarios.

Why is life insurance a scary word for people? Why do people feel cheap is always the best route to go? Why do people think life insurance only serves one purpose?

People naturally have a hard time talking about this topic.  They feel like it’s a grim  topic, or they are too healthy, or they don’t need it “just yet”. 


The person in the first scenario discovered at the time of need he did not have the coverage he thought he had for his wife.  If you shop on price and don’t have all the facts of your policy, the policy may not provide what you thought you purchased.  This man thought he bought his wife a level death benefit 5 years before to help cover funeral expenses.  What he purchased was an “accident” policy.  5 years later his wife dies of health complications, and the policy provides no benefits.  He had NO IDEA his policy wasn’t going to cover his wife’s death due to an illness.


The second scenario provides a good example how diversifying your portfolio can help you later in life.  Instead of dedicating time learning additional financial options to provide multiple income streams during retirement, he did what many people do and put some money into savings,  banked on social security,  and hoped his pension would get him through the rest of his life.  What he didn’t know was he could have invested money early in life into a life insurance policy which builds cash value and he would have had another stream of income at retirement.


The 3rd scenario is heartbreaking.  Not only did the Mother receive devastating news, she had nothing in place for her kids to help assure they were going to be taken care of financially if it turned into something worse.  Fortunately they caught the cancer in the early stages and she is now in remission.  She realized the need to set something up on herself, so her kids would be fine financially.  Unfortunately the cost of waiting meant increased cost due to the cancer.


The 4th scenario is difficult.  Before the couple made a decision to move forward with another life insurance policy, they cancelled their current plan even though they were told not to cancel until they decided on a specific policy.  A policy holder should never cancel a policy before another one is firmly in place.  Now, the cost of the new policy and making it hard for them to purchase the coverage they need. They should have kept the current plan in place, and considered adding  another policy that would have provided a nice cash value at the end of that policy.


Have you considered life insurance as a gift for a child, Grandchild, or Godchild? Did you know that getting life insurance in your early 20’s will be cheaper than getting it in your 30’s?  These are just a few of many different scenarios of how life insurance can help. 


Life insurance is NOT a “one size fits all” product.  Each of us has different needs, wants, goals, and desires of what we want to achieve.  Life insurance a very important product for all of us.  It could pay off your mortgage, pay off your credit card bills , or pay for a funeral.  Life insurance also can build cash value to help pay for a wedding, that mid-life crisis sports car, protecting a business, or even leaving a legacy.  


Make sure you know the risks of “not” having a life insurance policy in place.  Contact a professional who is trained to help find what is right for you.  The key is, what you need to help you achieve your goals. I hope everyone has a wonderful 2016.  If you have any further questions on this topic please call or email First State Agency, and we will be more than happy to talk further with you.


Jake Nordin

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