Most people would like to have that whole life policy that is worth one million dollars. Not everyone needs it. Some people who need it cannot afford it. That does not necessarily mean you should go entirely without, maybe asking further questions such as, "What can I afford?" would help narrow your shopping strategy.
Though from the title of this website and it's over all subject focus, one could easily conclude that I only work with persons in or nearing retirement, that is not the only part of life in which I can help you with your over all financial goals and strategy. No matter your age, having life insurance can be critical for those who depend on you.
If you had died yesterday, what plan is in place for your loved ones to carry on financially? Most of us have those around us who would be emotionally grief-stricken, but add to that grief the prospect of being without the income you provide. Funerals are expensive. The most recent survey is from 2009, and the data there suggests that the average cost of a funeral is approaching $11,0001.
I recently had a client who passed on. His wife came to see me for other reasons, but she was very adamant that she get life insurance coverage. She saw what it did for her family, and wanted to make sure that she could plan ahead for her children. Since we don't generally want to think about life without our loved ones, we often put off important planning steps until it is to late.
There are a few things you can do to plan now. I do free reviews for anyone who would like to take advantage of this service. Here are some of the questions you would find me asking:
If you have life insurance:
- Where is your policy?
- What is (or was) the purpose of this policy?
- Are the beneficiaries up to date?
- Do the beneficiaries know where to find the policy?
- What type of life insurance is it?
- How much are you paying?
If you do not have life insurance:
- What is your budget?
- Why do you want this life insurance?
- How much coverage would you like to have?
- Do you need this coverage to last for a specified amount of time, or do you need it to be there until the end of your days?
- What is your health like?
- What is your driving record like?2
If you have questions for me, or would like to review your life insurance policies, feel free to contact me, or just set up your free consultation.
1. The average annual increase in funeral cost since 1960 is 21%, making this number on target with anecdotal evidence from other sources such as Funeral Costs: How much does an average funeral cost?. Further, and as the aforementioned article points out, there are other costs not factored into this calculation, such as flowers, publishing an obituary, or the cost of getting loved ones to the funeral.↩
2. Before approving a policy, most companies will at least briefly look at your MVR (Motor Vehicle Record) to determine if you are a risk for them as a motorist. I have seen people in excellent health declined because of repeated offences on the MVR. Lessor offences can also effect the price you pay for your coverage.↩
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