Life insurance an “annoying detail” that brings comfort
Life is like trying to find something in a cluttered closet; a jumbled mess in every corner. And yet, life is ours to enjoy if we know when to embrace its chaos and when to corral it to attend to those “annoying details” of organizing living for oneself, as well as for the benefit of others.
One of those details is life insurance. According to LIMRA, an insurance industry research group, 30 percent of U.S. households have no life insurance. There are fewer households with life insurance today than six years ago – 11 million fewer. And, many people may not have enough life insurance, particularly if they purchased a policy a long time ago and never gave it a second thought.
If you have any doubts about how your family would financially survive without you, you need life insurance. Life insurance can be a blessing you leave behind. There are many reasons to make it the cornerstone of sound financial planning.
September is Life Insurance Awareness Month, sponsored by the Life and Health Insurance Foundation for Education (LIFE). Its website has a life insurance needs calculator to help you determine how much money your family will need at your death. This is an important step because absent this homework, you may be inclined to buy your coverage in pieces and that could cost you more. It’s wiser to buy one policy instead of multiples. You want to consider not only final expenses, such as funeral costs, but also outstanding debt, like your mortgage balance, along with future needs, such as paying for college expenses for children or grandchildren.
We’ve got some tips for selecting a life insurance company and information on the types of policies. Never buy a policy based on the cost alone; you want to understand how the benefits are paid out, so ask questions and take charge.
There’s a real-life story from “Cake Boss” Buddy Valastro about how life insurance would have helped him run the family bakery business. His father died suddenly when Buddy was 17, and he had to drop out of high school to be the breadwinner. Click here to view the video.