What Happens When You Don't Buy Life Insurance
Today, we're going to be discussing the implications behind waiting to purchase family protection policies. A few weeks ago, I told you about a young mother who's a current client of mine, who had contacted me because her family had since grown and she realized that her life insurance and disability policies were out of date. I explained to you a few weeks ago that we increased her life insurance policies, increased her disability policy, to keep up with her growing family.
This week, I want to explain to you, or talk to you about, a current investment client of mine who came into the office to review his investments. He was very happy with the performance of his accounts. However, he did say to me, "I realize my life insurance needs are no longer . . my life insurance needs have increased. My financial picture had changed and I need to take a look at my life insurance policies in order to make sure that if I were to die prematurely, my wife can continue to stay in the house that she's in now and can continue to still afford the payments, and that my children can still go to college that I want them to go to if I'm not here."
His income had increased quite a bit in the last 3 to 4 years, and we did a need analysis for his life insurance. It was determined that his life insurance need had about doubled from what it was last time. He was planning on adding more money to his investment accounts that day, which he did. Money was not going to be an issue as far as affording the monthly premium. However end of the day, unfortunately for this client and for his family, he was not able to connect the dots that there was something that he should purchase. He didn't see the value in it. In his mind, he was perfectly healthy. He's not planning on dying so why spend that amount of money on life insurance?
I explained to him that these policies, unfortunately, are things that you cannot buy when you need them. You have to buy them when you're healthy in order to be able to get a good rate. I've been in business for 10 years now, and unfortunately, I've seen the negative implications of not buying life insurance policy. Unfortunately, something happening; a premature death. Unfortunately, this week's episode is not a story about that client going ahead and purchasing; it's about a client who did not, in my opinion, make the correct decision and protect his family.
The reason I tell you this story is that if you are a young family out there and you realize that you need to increase your life insurance policies, to please sit down with myself or sit down with somebody that you're comfortable with and explain to them your situation. We'd be more than happy to make sure that you're properly protected in the event of a premature death.
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