John Shook | Insurance Expert

Why it’s important for people to have proper life insurance in place

People regularly insure their autos because it’s required by state law and by the lienholder if there is a loan.

People regularly insure their homes because the mortgage company requires it or, if they own it outright they want to protect their largest asset in the event of a disaster, etc.

But, do people regularly insure their most important assets…their family and themselves?

Quite often, the answer is no.

Think about what matters most in life. The answer is usually going to be your family.

This brings to mind a story that touched me personally: My brother’s friend since grade school became a widower suddenly with three teenagers when his wife was stricken ill and passed away two weeks later. Their lives changed forever immediately. He later confessed that if they had not had the $500K life insurance policy, that they very likely would not have been able to stay in their home. In addition to the severe emotional grief, they also would have had to deal with financial pain. The life policy allowed them to stay in their home, keep their previous standard of living, and save them the pain and hassle of having to move.

Why don’t people buy life insurance?

Approximately 25% of uninsured households say the reason they haven’t bought life insurance is because nobody has asked them about it.

Here are some thoughts to consider:

1) Do you have any life insurance outside of work? A policy that you own and can take with you if you leave your employer? Do you have life insurance at all? If not, you should consider it.

• 25% of households are covered only by group life insurance.
• 30% of households have NO life insurance coverage on anyone in the household.
• 50% of U.S. households readily admit they currently don’t have adequate life insurance coverage.

2) Are both of your incomes required to make your mortgage payments?

3) Are you confident your family can take care of itself financially if something were to happen to one or both of you? Life insurance can help with this. Plus, life insurance pays out tax free.

4) It’s important to understand that your homeowner’s policy won’t cover a mortgage balance in the event of your death. In order to provide that protection, you should review your need for life insurance. Think about the need for life insurance as part of your overall strategy to protect your loved ones in the event something were to happen to you, your spouse or other loved ones.

To learn more, contact our team at Legacy Life Strategies for a free assessment.

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