Why do you need Life Insurance?

Posted by Mark Osborne on Sep 8, 2016

Let's face it, Life Insurance isn't a pleasant thing to think about, and it may seem like an unnecessary expense.

BUT, if you have dependents who rely on you for financial support, then Life Insurance is really about protecting them in case something happens to you.

And the fact is, most Americans believe that Life Insurance is important.

Life Insurance by the numbers:

  • 85% of consumers agree that most people need Life Insurance, yet only 62% say the actually have it – according to a 2013 LIMRA Life Insurance study.
  • In 1960, 72% of Americans owned individual Life Insurance; that number dropped to 55% by 1992, and reached a 50-year low in 2010 when only 44% of U.S. households owned individual Life Insurance
  • According to a 2011 LifeJacket study, 40% of Americans that have Life Insurance don’t think they have enough
  • A whopping 70% of U.S. households with children under age 18 would have trouble meeting everyday living expenses within a few months of a primary wage earner dying

Life Insurance in Action

The concept of Life Insurance is quite simple: your designated beneficiary would collect a financial benefit upon your death.  This is commonly referred to as the death benefit, or face amount of the policy.  Essentially, it’s the amount of coverage you have on your life.

Consider this example:

Youth minister Preston Newby and his wife, Tara, met during college and were soon married.  After visiting their local Insurance Advisor to purchase Auto and Renters Insurance, they decided to look into their Life Insurance options.

With a 19-month-old son and another child on the way, Life Insurance protection made a lot of sense in case anything ever happened to either of them.

Unfortunately, this worst-case scenario became a reality just a few months later.

While driving to Canada to visit Tara’s parents, a group of cars ahead of the Newby’s slammed on their brakes and veered into the right side of the road.  After coming to a stop, Preston hopped out of the car to find out what happened.

One of the cars had hit an elk, and when Preston realized a passenger was bleeding, he ran back to his car to get his phone so he could call 911.  Shortly after calling 911, a car flew by and hit Preston, injuring him so severely that he passed away in Tara's arms.

This situation is incredibly tragic, and could have been even worse had the Newby’s decided against the Life Insurance protection they were considering.

However, thanks to the Life Insurance policy they had purchased months earlier, Tara was able to pay off the family’s existing debt, and provide for her two young sons after Preston’s death.

To see more on Preston & Tara's story, watch the video.

Whether you’re 25 or 55, a Life Insurance policy gives you the peace of mind that should the worst happen, your loved ones will be taken care of.

Even if you already have life insurance through your employer, you could very likely be uninsured.  It’s important to keep in mind that nearly all Life Insurance coverage provided to employees is not portable.

What does portable mean?

If your Life Insurance that you have through your employer is not portable, it means that if you’re no longer employed – whether you choose to leave, you’re fired, or you become disabled and your employer has no choice but to let you go – you lose your Life Insurance.

So while it’s nice to have Life Insurance provided by your employer, you shouldn’t rely 100% on that coverage to protect your loved ones.

At the very least, find out whether your coverage is portable should you leave.  Ideally, you should look into purchasing Life Insurance coverage that you actually own so regardless of your employment status, your loved ones will be protected if something happens to you.

Conclusion

Finding the best insurance policy for your Life Insurance needs in Ohio can be confusing, time consuming and difficult.

However, the right insurance protection is still critical to protect your loved ones.  Without it, they're one claim away from being in serious financial hardship.

And remember, not all policies are created equal.

You probably wouldn’t go to your eye doctor instead of your dentist if you were having a toothache, right?  Just because they’re both doctors doesn’t mean they have the same skillset.

Just the same, you need an Insurance Advisor that understands your individual needs, your financial goals, and how best to protect you and your loved ones.

We can help.

We know the Life Insurance market, we take the time to listen and understand your needs, and we work with multiple insurance companies so we can deliver the insurance solution that’s perfect for you, and your budget.

When you have confidence in your Insurance Advisor, you have greater peace of mind knowing that your family will have the financial resources needed, even when disaster strikes. 

To get started on your customized solution, contact one of our Licensed Advisors, or Request a Proposal and we’ll get to work right away.

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