I was chatting with several folks today about life insurance and I asked them a few questions. It seemed to catch them off guard at first, almost like they were saying in their minds, "Why in the world is he asking me that?" And then the lightbulb came on and I could see in their eyes that I had made my point.
The questions were simple.
#1 - Do you currently own life insurance?
#2 - How much is your current cell phone bill?
#3 - How much is your current cable bill?
Believe it or not...not one person hesitated in answering these questions. The shocking thing to me was what they said. Only one person out of seven had an active life policy in force. And the cell phone and cable bills ranged from $60 - $200 a month total.
And then I asked them this very important question..."How much money is your cell phone company or cable company going to send your family after you die?"
That is when the lightbulbs came on. The answer is nothing. Nada. Zip. In fact they will probably do the exact opposite and send them a bill.
So why is it that we can drop $60 - $200 a month for cable and cell phones and not even think about it...but when I quote a life premium for that amount it causes people to swallow their tongues?
The truth is the financial security of our loved ones is far more important than the instant gratification we get from our cute texts, our Facebook posts, or anything that can be found in the TV guide.
In a lot of cases, $60 a month can buy a very nice life insurance policy. $200 a month can buy a super nice life insurance policy.
The sad reality is that by the time most people get serious about life insurance, the cost scares them half to death.
Think about this...
A 22 year old male in good health can purchase a $100,000 Universal Life policy for $60 a month. The coverage will last his entire lifetime, meaning a guaranteed payout to his heirs at his death, and he only has to make payments until he is 65 years old.
Take that same scenario and increase the payment to $100 a month and the coverage jumps to $171,000. Payments until age 65 and lifetime coverage.
And, if he bumps the payment up to $200, the coverage increases to $374,723. Payments until age 65, lifetime coverage.
I can guaranteed you that neither Time Warner Cable, Verizon, Dish Network, nor DirecTV will send his wife and kids $100K, $171K, or $374K at his death. But your Life Insurance Company will...if he gets his priorities in order.
So, let me ask you...Do you currently have life insurance? How much are you paying for your cell phone and cable? And finally, if you don't have life insurance, can you make room in your budget to make sure your family is well protected after you are gone?
If I have gotten your attention and you want to chat about this...give me a call. 919-634-2490
Let me tell you a true story about the power behind the gift of insurance. The gift of insurance you might ask? What is the gift of insurance?
My mom was a savvy lady. She never had great wealth, never had a lot of material possessions, but what she had she worked very hard to acquire. You may have heard the expression , "an honest day's work for an honest day's wage." Well my mom lived by that code.
Even though she never amassed much wealth, my mom worked very hard and gave a lot of what she made to others. Either to the debtors that she owed, or as gifts to others.
One of the greatest gifts my mom ever gave me was the gift of insurance. Well, I guess technically she gave this gift to my wife, because when this money is paid out, I won't be around to spend it. So I guess it would be correct to say she bought this gift for my wife and daughter.
I was 27 years old. My mom had an insurance agent come by her work and talk to her about the importance of life insurance. She already knew this as she was well insured, but she knew that I was not. At 27 I had not yet discovered how to put my priorities in the correct order. But my mom did. So she purchased a 100,000 life policy on me for $42 a month. Today I am 43. That same policy would cost me over $100 a month. But thanks to my mom, the policy is now mine and I make the $42 per month payment.
Here's the importance of this purchase. In 2009, doctors found a tumor on my pituitary gland. That coupled with a diagnosis of sleep apnea means that in my late thirties...I became "uninsurable" for a while. Meaning I cannot outright purchase life insurance. So there was a time when I had no life insurance except for what my mom had bought for me.
I share this story because it made a powerful impact on my life and helped in the decision to change careers and move to the insurance field. Nothing makes you want to buy life insurance like knowing that you cannot. That was a very helpless and scary feeling for both me and my wife.
I believe in insurance. I see the power it has to protect the ones you love. I have also seen then chaos that ensues for a family, who in the midst of their grief has to "pass the hat" to bury a loved one who died without insurance.
The bottom line here is this. You never buy life insurance for yourself. This is most always a purchase for someone else. There can be a few exceptions to this; but, most of the time someone else will benefit from your decision to purchase life insurance.
So here's the deal, if you have children or grandchildren that cannot afford life insurance or have not yet seen the importance of this product; do them a favor and purchase them a policy while they are still young. You can always transfer ownership over to them when they grow up and mature. But get something started for them now.
Here's a fact. Life insurance rates go up every single year because they are based upon age of the insured. That's why you can buy life insurance on a 15 day old baby for pennies a day, but the forty year old will pay many dollars a day. The clock is ticking. You will never pay less for life insurance than you will today.
You also should know that there are many types of insurance and it can be a confusing matter. We have insurance products for literally every age group, from birth to 100. And not every plan is right for you. I can help you sort this out. I do not use a cookie cutter approach in this because everyone is different and has different needs. I provide a free, no obligation, "life needs" consultation to help you figure out exactly the direction that is right for you and your family. Call today to schedule an appointment.Feel free to call or text me a message at 919-634-2490.
Licensed Insurance Professional in NC. Specializing in Life, Auto, Home, and Annuities.
#1 - Life Insurance is too expensive.
False - I have term policies for a 40 year old male in good health starting around $20 per month. We also have Permanent Whole Life Policies for infants that are under $20. Less than the cost of a nice steak dinner.
#2 - I'm too young to think about life insurance.
False - The sad reality is that everyone will die someday. And there are many benefits to buying life insurance while you are young. For example, It is cheaper, It oftentimes guarantees that you can buy additional insurance later without and exam, and some policies have savings accounts built into them which could equate to substantial savings over time.
#3 - I have insurance through my employer and that is all that I need.
False - It is great that you take advantage of your employees insurance. But did you know that many times when you leave a company the premiums go up so high that you can no longer afford the coverage? Also, if you are out of work due to a disability, employers have the right to cancel your group life insurance after 90 days, thereby leaving you uninsured.