September is National Life Insurance Month. A family really cannot do without life insurance. Being young is the best time to take out life insurance. The younger you are, the less you will pay.
You need life insurance before it has to be used, that is, before it has to be used on your behalf. If you are the main earner for your family, you must be insured. If your spouse works, you also need life insurance. Are you a partner of a company? Each partner must be insured to cover any loss in the untimely event that they have left their earthly presence. How much insurance do you need? Ideally, you need an amount equal to your current debt, monthly expenses multiplied by 24, the financial needs of your children (under 18 or 26 if they are in school) through high school and your spouse for the duration of your expected life in case of not being able to work. The first is an ideal objective target. Every family situation is unique. If the spouse also works the computation and needs change. When the family dynamic changes, new needs arise while others are no longer necessary to cover. Today, more than a few policies can be turned into an income generating vehicle later in life. That income later in your life vehicle turns out to be a valuable asset.
Listening to people explain how they and their families were catapulted into poverty after the tragic loss of a loved one made me realize that far too many people are not protected. Many people do not have enough coverage. Those who have company-provided or subsidized insurance lose that insurance when they leave that organization. Some lose employer life insurance as a result of a merger or company buyout. Some lose employer life insurance when they retire.
If the employees had invested in life insurance individually, the policy is active as long as the premiums are paid. Buying life insurance when you are young is the best premium you can get. Some life policies accumulate cash value. Some life policies allow you to take cash value loans. Some allow inclusions or “Riders” including double indemnity, long-term care, and home health care additions. Some policies easily convert to income generating vehicles to supplement your retirement income. In some cases it may be the only income.
The sale of AH&D (accident, health, and disability) plus auto loans in the 1970s, 1980s, and 1990s helped more than one family make ends meet. It was very gratifying to receive thanks for making sure they were covered. For those who did benefit from the extra coverage, it was available when they really needed it.
Today there are plans that can be adapted to the needs of most people and families. There are plenty of plans to fit even the tightest budget. The average cost of the funeral is between $8,000.00 and $12,000.00. Cremation is also expensive. Average Cremation with a memorial service is $3,250.00 and up. The average Direct Cremation is $500.00 to $2,000.00. Funeral costs are in addition to the medical costs associated with a sudden death. Many times the cost of replacing the financial contribution or trust of a lost one has a value that most do not equate in their calculations. A stay-at-home spouse has monetary value. A relative who is a caregiver has a monetary value. If the loss of that spouse or caretaker occurs, the cost to replace her monetary value can be quite high. The cost of replacing your carrier is priceless. The legal system can take years if a settlement is even a possibility. Add children and elderly relatives to the equation and the necessary financial cost increases substantially.
A family really cannot do without life insurance. Being young really is the best time to buy life insurance. The younger you are, the less you will pay. Setting a premium at an early age is a smart choice.
Insurance Carla J.
