Life Insurance, Shouldn’t It Be About Income?

Cash And Income Problems Solved

The idea of using life insurance to solve financial problems after death is almost as old as the hills. People have a tendency to approach this in a manner that can be described as too casual at times.

Sometimes sufficient thought is not given to the impact on the family if the breadwinner, or breadwinners, do not own sufficient life coverage to replace their incomes after death. It may be that people are so afraid of death that they develop some type of mental block.

The amazing thing is that I see so many intelligent people who don’t want to think about buying insurance.

What will happen to your family when you die? Have they been provided for? Compare Multiple Quotes From Highly Ranked Carriers and Save.

Life Insurance Solves Many Financial Problems

I have spent over 40 years in this business and I have seen families in pure panic after the death of their father and husband. On the other hand I have seen a wife bury her husband with such dignity and an open expression of love and respect for him that there are no words to sufficiently describe it. He left his wife and his children financially secure for the rest of their lives.

They could continue living in the same house. The children could continue going to the same school, they could continue their same extra curricular activities, they continued wearing nice clothing. Money was available for college…

All of these things guaranteed because the husband and father took the time to prepare for death. There was sufficient income for the wife he loved so deeply to live out her days very comfortably. The policy didn’t replace the husband but it kind of made him immortal in a way.

All this may sound like a fairy tale to many but ask any insurance agent who has been in this business for many years. Sometimes the beauty of the thing brings you to tears.

How can the average person do the same for their families. You first must decide how much insurance you need …then start off with term insurance. The reason I recommend this is not that I have any great bias against permanent insurance but term insurance is simply cheaper. Most people cannot afford permanent insurance at the outset.

I have a passion for the 20 year term and the 30 year term policies. As you progress you can convert your policies, if you choose, to something like a universal life policy which allows for flexibility in premium payment as well as death benefit amount.

Take some time to examine life insurance and what product would best fit your needs and guarantee your family a secure financial future.

Should life insurance not be about income?

Many people love to think about getting that large lump sum into their hands. Some people dream about winning the lottery, winning money at the race track or inheriting a large sum of money. The biggest problem with these ideas is that when these people get these windfalls too many of them don’t know what to do with the money. If you don’t believe me ask the average person what they would do if they inherited $20,000,000…

After hesitating a little they start telling you what they would buy and who they would give money to. What everyone needs to know is that, for most people, it is better to have a never ending income than to have a lump sum. Life insurance should be about income. Life policies, when properly set up provide income for the family. When you have this never ending income you can think about giving and buying things.

• Review Your Life Insurance Portfolio At Least Once Per YearYou should review your insurance portfolio regularly, that is at least once per year. When a breadwinner dies there are certain items that must be immediately paid in cash, but the majority of the proceeds of your insurance policies should provide income.Whenever changes occur you may need to review your policies at the time of the change. Changes like marriage or divorce, buying a house, birth of a child. All these occurrences are reasons for review…just remember income is the name of the game. Whenever you provide income you provide real security.
• What Type Of Life Insurance Should You Buy?It is imperative that you buy the best insurance policy based on your desires, needs, and your pocket book. In my humble opinion you should decide on how much income you need for your family in the event of your death and work backwards from there. There are many calculators available on the internet that you can use to do this.Term insurance is the preferred type of policy for the majority of people, mainly because of cost, but universal life, variable life, variable universal life and whole life can be excellent choices based on what you want your insurance policy to do and how much you can afford. I fondly remember the days when most people had some cash to fall back on, whether it was in a bank account, a mutual fund or even a life policy.People will tell you they don’t buy stocks because there is too much risk…they don’t save in a bank account because the interest rate is too low. They say that life insurance is not a good investment. That is true but…what these people should bear in mind is that you must start somewhere and accumulate some cash to invest in the bigger things…like real estate.
• There Is No Time Like The PresentI have yet to meet the successful person, in any field of endeavor, who puts off taking action. They usually want do do everything now…today. Buying insurance is one of those things that needs a now decision. We live in the information age. As a result…today we can find information on just about anything in a mighty hurry. It is just a matter of the click of a mouse. You can find out how much insurance you should own and, would you believe it, in some cases buy your policy right here on the internet. In other cases you can have life insurance companies give you quotes and you decide which way you want to go.
• Insuring Other Family MembersAll the intelligent people that I know of consider placing an insurance policy on other members of the family after buying a policy on their own life. You probably would ask why? We nowadays seem to assume that we, the breadwinners, are the only ones that could suddenly die. If a spouse or children should die the grief can be devastating. The blow can be cushioned somewhat if we can pay the bills brought about by this eventuality. There will be attorneys fees, funeral expenses and in the case of the spouse, may be some outstanding debt. Put a small life insurance policy on their lives…figure between $5,000 and $50,000…it can make a big difference if any of your loved ones should die.