September is National Life Insurance Month. A family really can’t do without life insurance. Being young is the best time to get life insurance. The younger you are, the less you pay.
You need life insurance before it has to be used, so before it has to be used on your behalf. If you are the main source of income for your family, you should be insured. If your partner works, he also needs life insurance. Are you a partner in a company? Each partner must have insurance to cover any loss in the premature event that they have left their earthly presence. How much insurance do you need? Ideally, one needs an amount equal to current debt, monthly expenses times 24, children’s financial needs (under 18 or 26 if attending school) through secondary education, and your spouse for the duration of their expected live in the event that they cannot work. The first is an ideal target. Every family situation is unique. If the spouse also works, the calculations and needs change. When family dynamics change, new needs emerge while others may no longer be needed to cover. More than a few policies today can be turned into an income-generating vehicle later in life. That income later in your life vehicle turns out to be a valuable asset.
Listening to people explain how they and their families were catapulted into poverty after the tragic loss of a loved one made me realize that too many people are left unprotected. Many people have insufficient coverage. Those who have company-provided or subsidized insurance lose that insurance when they leave that organization. Some lose their life insurance policies as a result of a company merger or acquisition. Some lose their life insurance when they retire.
If employees had individually invested in life insurance, the policy is active as long as the premiums are paid. Buying a life insurance policy when you are young is the best premium you can get. Some life policies accumulate cash value. Some life policies allow you to borrow loans from the cash value. Some allow withdrawals or “Riders,” including dual benefits, long-term care, and home care. Some policies can easily be converted into income-generating vehicles to supplement your retirement income. In some cases this is the only income.
AH&D (Accident, Health and Disability) sales added to car loans in the 1970s, 1980s and 1990s helped more than a few families make ends meet. It was so rewarding to be thanked for making sure they were covered. For those who took advantage of the extra coverage, it was there when they really needed it.
Today, there are plans that can be customized to meet the needs of most individuals and families. There are many plans to suit even the smallest budget. The average funeral cost is between $8,000.00 and $12,000.00. Cremation is also expensive. The average Cremation with a memorial service is $3,250.00 and up. The average direct cremation is $500.00 to $2,000.00. Funeral expenses are in addition to any medical expenses associated with a sudden death. Often times, the cost of replacing the financial contribution or dependency on a lost one has a value that most don’t match in their calculations. A stay-at-home spouse has monetary value. A family member who is a caretaker has monetary value. If and when the loss of that spouse or caregiver happens, the cost to replace their monetary value can be quite high. The cost to replace their company is prohibitive. The court system can take years if a settlement is even a possibility. Add children and elderly relatives to the equation and the financial costs required increase significantly.
A family really can’t do without life insurance. Being young really is the best time to get life insurance. The younger you are, the less you pay. Fixing a premium at a young age is a smart choice.
Carla J Insurance