Does anyone really need Life Insurance?

term life insurance

Life Insurance may not strike everyone as a top priority or the first item on their To-Do List.  In fact, some people see very little need for it.

I’m going to let you in on a little secret.  But before I do you’ll have to promise not to share this with any of the other life insurance agents out there.  They’ll be mad.  But it’s confession time:  not EVERYBODY needs Life Insurance.  It’s true.  Let me be the first to admit it.

However, the chances are high that YOU do.  To help illustrate and support my former point, let me give you some examples of someone that does NOT need life insurance:

  • A single person with no family, no debt, and plenty of money in the bank to take care of all of his or her final expenses.
  • A married couple who have paid off their house, have no children they’d like to leave money to, and have years worth of investments and savings accumulated.
  • A retired individual or couple who have enough money for their own final expenses and to clean up whatever financial obligations which may continue after death, and who have no desire to leave money to children, grandchildren, or cover estate taxes.
  • A minor child whose parents are financially secure and for whom they have no desire to start a cash-accumulating life insurance policy.

Life insurance isn’t for everyone.  And with that out of the way, let’s look at who might truly benefit from owning it.

If you are married, your death is going to leave behind a grieving spouse and possibly grieving children as well.  What is worse than a grieving family is a grieving family that is also financially devastated! Without your income, your family may struggle to pay the mortgage, the utilities, the car payment and insurance, food, clothing, maintenance and repairs, school supplies, health insurance, and medical expenses, and the list goes on and on. This kind of financial pressure, struggle, and worry are enough to render your family’s life miserable and full of stress.  It can erase most of the joy and happiness that would be their due if they were provided financially.

Imagine the difficult choices they might have to make in light of their new financial situation.  If your loss wasn’t painful enough, this sure makes a bad situation so much worse.

You, dear reader, will probably need enough life insurance to replace your income for the next 10 or 20 years, or until your children are grown and out of the house, depending on your circumstances.

If you brought home $50,000 per year, for example, then you might need $500,000 or $1,000,000 of life insurance.  Because of this large amount, Term Life Insurance will probably be what will provide the best solution.  The good news is that this is not very expensive.  A 35-year-old male can purchase a 20-year Term Life policy of $1,000,000 for just $37/mo if he’s in good health.  He could make that policy last for 30 years for just $69.

With rates like that, why would anyone forget protecting their family with life insurance?  The sad truth is most people are not thinking about it, or when they do they procrastinate deciding they’ll handle it in the indefinite future.  It’s very easy to simply assume “this won’t happen to me”.  Until you take one minute to think about all of the people you know who have been killed in a car accident, contracted cancer, or suffered an unexpected heart attack at an early age.

The fact of the matter is it DOES happen.  You can even be assured that your chances of dying are indeed 100%.  No exceptions.  The only unknown is “when”.  New statistics show the death rate is “one per person”!

If you have been procrastinating because you didn’t feel the need strongly enough, consider making now the time you take action.  Call a Life Insurance agent that you trust and ask him or her how much it would cost to insure your life for a sum that would provide for your family when you’re no longer able to.  Life insurance is more than peace of mind, it is true protection.