You hear stories every day about people of all ages, fitness levels, and health statuses dying suddenly from heart attacks, disease, or freak accidents. We urge all OAR members to take some time during September, which is Life Insurance Awareness Month (LIAM), to think what if that happened to me? Consider these reasons for owning life insurance:
- Debts – What happens to your debts if you die right now? Existing bills, medical and funeral costs. It’s a debtor Mount Everest on which you strand your family without life insurance. Who covers the expenses you have amassed already and those you leave behind?
- Your family may lose their home – Will they face foreclosure? Be forced to sell? They’ve just lost you now they may lose their home, too. Who will be there to pay the mortgage when you can’t be?
- Your business – Do you need life insurance to fund a succession plan, such as a buy-sell-agreement, for your business?
- Family lifestyle – Most couples in this day and age must both work to sustain their families. Think of the vacations and Christmas mornings your income provides.
- Income for necessities – What about school for your children? Do you envision them going on to college? Who will pay when you’re gone?
- The legalities – There may be taxes and legal and probate costs to cover. Life insurance can leave tax-free money to your beneficiary to cover such expenses.
- Quality care for your kids – What about the expenses that health insurance doesn’t cover? Does your son depend upon asthma medication? Does your daughter need braces? Will they one day? If so, who pays for that without you?
- Your extended family – With uncertain times, with retirement benefits vanishing, who will care for your parents as they are too old to care for themselves? Will you be there for them as they were there for you?
- The Unexpected – A young mother killed in a car crash. Six months later, her husband dies of a heart attack. Their minor children are left behind. You may think “my spouse will take care of them” but what if he/she can’t?
How much do you need? Once you have evaluated the items above for your lifestyle, you might have an idea of how much you need. While there are some rules of thumb and calculations you can use, you are unique, and will have to take into consideration your family members who depend on you now or might in the future, how much debt you have now or you might take on in the future, what is your practice worth now and what will it be worth in the future, etc. Most people come up with a number that falls between 5 and 15 times their current income.
Have you wondered if you are even eligible for life insurance? At rates you can afford? As you age, health issues become paramount. Tomorrow you will be older than you are today. Tomorrow is promised to no one. Will you be remembered as someone who thought of their family enough to provide for them in your absence? The time to think of life insurance is today.
We urge you to start evaluating your life insurance needs today, and 3000 Insurance Group is here to help OAR members with the process. Complete this Life Quote Sheet or contact Ashley, Janice, or Lydia today.