Why You Need Life Insurance

Many people have made a New Year's resolution to purchase life insurance in the coming year. A wise idea, but too many people will end up finding reasons to not follow through on that goal. Why? No one likes to bet against him or herself. But, truth be told, the future is unknown and it's critical to protect the people you love. While buying life insurance can be complex, the rewards of protecting yourself and your family can outweigh the pain. Take a look at the top five excuses for not purchasing life insurance and why they are just that - excuses.

1. “It’s too expensive.”  To begin, we have to define “expensive.” There are two kinds of expenses involved in life insurance: the initial cost and ongoing premium as well as the hidden costs of needing it if you do. The only way to discover those hidden costs is to add up what your family would need without your income. This is an analysis that should involve immediate and longer-term expenses such as basic living expenses, health insurance, college tuition, taxes, estate settlement costs and sadly, funeral arrangements. When you consider the enormity of leaving your loved ones to deal with these burdens by themselves, the expense of a yearly life insurance premium seems a bargain. Besides, if you acquire permanent insurance when you’re relatively young, a good policy should be surprisingly affordable.

2. “I just haven’t gotten around to it yet.” Life is fast-paced and it just keeps getting busier every year. Your intentions may be honorable, but none of us can predict what will happen tomorrow. When you set priorities for your family, protecting their future should be at the top of the list. You can solve your dilemma with a simple phone call or Internet search.

3. “I’d prefer to put my money somewhere else.” Every financial expert
recommends diversifying your assets into a variety of investment vehicles. Some of these investments should be long-term, and, in fact, the best of them will be the ones with long-range targets. Life insurance is both a long and short-term investment. It protects you while your other investments mature and serves as a conservative, guaranteed savings plan. As a bonus, life insurance can become a means for financing important things like a new home or college tuition.

4. “My employer gives me life insurance.” You may work for a great company, but it’s unlikely the company will provide the kind of coverage you really want and need. Most employers offer a basic term-life plan with relatively small benefits. Even if you stay at the same job for life, that policy will expire when you’re 65. If you leave the job, you’ll have to convert the policy to individual coverage and that would be far more expensive than buying the right policy now.

5. “I’m not sure I’ll make the right decision.” This is a valid argument. We all need to have the right people involved in our most important life choices and insurance professionals are as knowledgeable in their field as your lawyer or accountant. Finding the right insurance agent is the first step and to do so you can ask for referrals from trusted friends or search online for a qualified professional. In either case, interview the agent to determine your comfort level. Look for someone who wants to learn about your family's needs and plans. With that as the focus of the conversation, you can be assured that your decision will be the right one.

Do any of these excuses sound like you? It's normal to have doubts about making an investment such as life insurance but seeking out a qualified agent can put your mind to rest. Let NetQuote help by connecting you with qualified local agents offering the life insurance information you need.

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