Life Insurance…Who Needs it?

Well, you may be thinking, “Certainly not me, I’m too young/too healthy/too financially-challenged to worry about life insurance,” or something along those lines.  But, the truth is, it’s never too early to consider just how important it is to make some form of investment in life insurance.  There are a lot of questions you need to ask yourself to make the right investment…and a lot of questions you need to ask the person you entrust with helping you decide exactly what that investment should be.  Here is what Jim Honochick, President of YMI and The Lehigh Agency Insurance, had to say when asked, “Life Insurance…Who Needs It?”

I am often asked that very question by clients…and, speaking from personal experience, I can comfortably say most people should have life insurance.  It is one of the most cost-effective ways to protect the futures of your loved ones.

Ironically, my father didn’t believe in life insurance.  For all his great traits, financial planning wasn’t one of them. When my dad passed away in 1994, he had a single $25,000 policy.  While that certainly helped cover the cost of funeral expenses, it didn’t provide my mom with financial coverage for the lost income of his “employee-only benefits” pension plan. Although my mom was able to live off of her own retirement income for the next 15 years after Dad passed, it was only through frugal budgeting of that income that she was able to stay in her own house. Proper financial planning would have helped assure her financial stability and peace of mind.

Think about the impact the loss of a spouse or child would have on your life.  Beyond the obvious emotional impact, there would be a financial impact – potentially devastating.  There are difficult questions to consider in anticipation of such unfortunate realities.  Do you share expenses with your partner?  Have you incurred debt on behalf of your child(-ren)?  After the loss of a loved one, how would you continue to pay the mortgage?  the car loan? the college loan?

The good news is that financial protection, through life insurance, can be secured at a relatively low cost – it does not necessarily have to be expensive.  A little investment now could provide greatly for your loved ones later.  The cost of a policy depends heavily on age and health – the younger and healthier you are, the less expensive your coverage.  For example, a 30-year old man in good health can get a $100,000 policy for less than $12/month…and that rate is guaranteed for 20 years!  Think about that – for a total expense of less than $2,900 over the course of 20 years, he could provide his family with $100,000 in the event of his death. 

An investment in life insurance is an investment in the futures of your loved ones…it is a wonderful way to provide them with a legacy of your love.  So, please, call my agency to discuss the many policy options available.  We would be happy to prepare some examples to best suit your individual needs…and those of your loved ones.