Just imagine that you have gotten some of the worst news you could possibly receive.
Your spouse/partner has been killed in a car accident. While dealing with all of the emotions and heartbreak of this news, you have to slog through this devastating circumstance and take care of yourself and your family in practical ways.
You will need to find the life insurance policy that was hopefully purchased to help continue to pay your bills. You will need make changes to bank accounts and other financial accounts. You will need to be able to access your auto insurance and home owner’s insurance policies and various legal documents.
Human beings prefer to deal with things they know about and have an affinity for, or have the education and learning to be successful. If you are like many couples, it seems one of you deals with the finances of your household and one of you wants nothing to do with all that! One of you loves it, or at least doesn’t mind dealing with these types of things, and one of you really hates it.
I would propose that you may want to rethink this in your relationship. Both people should be aware of all account passwords, login information, insurance policies (especially life insurance), your last will and other legal documents. Maybe you store this in a safe in your home or a safety deposit box at the bank. Many families utilize an password application that stores everything in one place electronically. Even if one of you makes most of the banking, investment, insurance, medical and other type of life decisions, both of you should know what is happening. Even if you have separate bank accounts, be sure you can access all accounts in the case of the death of the account holder.
I have dealt with insurance customers that have lost their spouse, and are completely clueless how to move forward with everything. They have no idea what is going on with their insurance, how to pay the bills, and even how to access sorely needed funds. It can be months and months of struggle, on top of dealing with the loss of their loved one.
A very stressful situation can be made SO MUCH EASIER if you will take a couple of minutes to have a discussion about your accounts and the access needed, just in case.
When discussing life insurance with my clients, lots of people tell me, “Kris, I have life insurance at work, so I am all set.”
While I am truly SUPER HAPPY that you have some life insurance, there are a couple of things to consider:
What happens when you no longer have that job? You may plan to retire from the company you are working for now, but I think 2020 has shown us that your exit may not be within your control! You may be laid off or terminated through no fault of your own.
What if you are injured in a car accident and can no longer perform your normal job duties? It would be nice if your company would still provide life insurance just because you were a great employee, but we know that isn’t going to happen.
Let’s say you make it to retirement age at your company. What happens to your life insurance policy at age 65? Bye-bye. Now you are scrambling for insurance when you are older and less healthy, and have a fixed income. How are you going to afford a life insurance policy at this stage of the game?
How can you be sure you provide for your family if you aren’t here?
Buy a life insurance policy that isn’t tied to your employment. I advise clients to buy a policy that is their own, with no employment strings attached. Keep the one at work as your extra “icing on the cake” policy. That way, when/if you are no longer employed, you still have something in place.
Have a combo of term/permanent insurance. This can be a very affordable way to have lots of life insurance during the stages of your life when you have lots of bills – a mortgage, car payments, college tuition, etc. Then taper off to one last policy that will help your family pay for your final expenses – a traditional funeral, or maybe a big send-off party! It’s up to you.
There are lots of great options you can check out. Some don’t even require a medical exam! You can’t get much more convenient than that.
Click on the “get a life insurance quote” button on the life insurance tab, and let’s make sure we get your family income protected!
For more information here are some additional sources you can check out.
There are lots of reasons I hear from clients to put off buying life insurance:
It’s too expensive.
I just haven’t gotten around to it.
I have some at work.
I don’t want my spouse to have fun with another person with my life insurance money.
I’m too young to need it.
It’s too expensive.
According to www.lifehappens.org, life insurance is almost always less expensive than you would expect. If you can afford a boujee coffee a couple of times a week, you can afford life insurance.
The price of life insurance is based on a number of factors, but the most important are age, health and the type of policy. In general, life insurance is cheaper the younger and healthier you are.
I just haven’t gotten around to it.
Unfortunately, lots of people do not get around to purchasing life insurance until they need it, at which time is usually too late. Maybe they are diagnosed with an illness or condition. Maybe they are in a fatal car accident and “were going to get around to it soon.”
There are all kinds of “EXPRESS” life policies that can make the process quick and easy. Your family will thank you for taking the time to take care of them.
I have some at work.
Life insurance at work is a lot like renting, meaning it does not go with you when you leave and you lose the benefit. It’s great to have a policy at work, but think of it as the “icing” policy and get a “cake” policy that you have no matter where you are employed.
I don’t want my spouse to have fun with “my” life insurance money with someone else.
Ok. Don’t be a jerk. Think about the people you love – your spouse and kids – having enough money to stay in their house, stay in the same school district, and having enough money for your funeral. Life insurance funds can help your children go to college or otherwise prepare for their future.
If you don’t leave funds for your family to replace your income, the chances of them getting into trouble financially and needing to find another spouse to help out with finances is much higher.
Do the right thing.
I’m too young to need life insurance.
You will never be younger than you are right now! Even if you don’t have a mortgage, spouse, or kids, you probably will some day. Buy a policy that would cover a mortgage and funeral in your area. Your future self and spouse will thank you!
There are countless examples I could give of friends or family members that were healthy one day, and diagnosed with a condition that makes them ineligible for life insurance the next.
A healthy 22 year old can buy a $500,000 policy with a 30 year term for about $30 per month. That same policy for a 44 year old will be double or triple that amount, providing there are no extenuating health issues that have popped up.
I know you think you are invincible. I hope you are….but just in case…don’t wait.
For more information about life insurance in general, check out www.lifehappens.org. or contact our office. 502-603-0397
