You are your greatest asset,
What are you doing to protect yourself?
For most of us, our earliest experience with insurance is auto insurance, a pretty simple concept, pure insurance.
You pay a premium, you have coverage, just in case.
Frequently life insurance is overlooked, this is especially true for younger generations. In my experience, young people don’t see the need until they see the impact on a spouse or a family when there wasn’t any or enough life insurance, and death happens
Think this through, what if you could protect your family by paying off your debt? the house? the car? your student loans, if you died suddenly. That’s life insurance!
Think about it this way.
Hypothetical
Scenario #1*
At age 36, Adam, who is healthy, doesn’t smoke, buys $500,000 in life insurance. It will cover his mortgage of $255,000, the car loans, and what’s left of his student loans, with enough for cremation.
Unfortunately, Adam dies in a car accident. His wife Tara, who is his beneficiary, receives that $500,000. She can’t replace Adam, but now she can keep the house and the debt is gone.
The financial stress is much less on Tara, she can heal, thanks to Adam thinking ahead, being prepared, and caring enough for Tara to make sure she would be ok.
Hypothetical
Scenario #2*
Now, look at the same scenario but a different outcome. Adam buys $500,000 in life insurance, but he doesn’t die early. Instead, he pays his monthly premium to age 65, and then stops paying, he has paid approximately $50,000 for the comfort of knowing they had approximately $50,000 available if the worst should happen.
But now Adam has about $50,000 in cash value savings, the same amount that he paid to have the insurance all those years.
Yes, he can take the money! He doesn’t have a mortgage now, the kids are grown, debt isn’t a concern. He intends to be cremated, just keep it simple, but he wants a really great send-off party, so he sets aside $10,000! Now he still has the rest of the money for him to Tara to take a world cruise, or whatever.
*These values are hypothetical only and do not reflect any specific policy. Actual premiums and cash values will vary by a number of factors. Surrender penalties may apply to the policy surrender.