Have you invested in life insurance coverage? If not, why not? There are plenty of reasons that people give for avoiding life insurance coverage—but frankly, most of them are pretty weak.
Life insurance is a critical—and often overlooked—component of any investment plan. Should something unspeakable and unexpected happen to you, life insurance will protect your investment and protect your surviving loved ones, in the process. Life insurance ensures that all your carefully laid retirement plans aren’t thrown out the window if you die unexpectedly.
Lame Reasons to Forgo Life Insurance
Nevertheless, many investors skip life insurance—and often for reasons that are pretty lame. Consider some of these actual reasons people have given for eschewing life insurance.
They think it’s too expensive. Life insurance is an investment—which means it will cost some money. But remember that there are different life insurance products out there with differing price tags, so it’s possible to find something quite affordable. Also note that life insurance protects your other investments!
They don’t want to haggle with life insurance salesmen. Of course, nobody really likes dealing with high pressure sales representatives—but here is a secret: Often, life insurance products are available from your financial planner. And when you have an independent retirement planner, you can rest assured that you’re getting unbiased advice about the best life insurance product to buy.
They are spending all their income to insure other things. Yes, insuring your car is important. You may even wish to insure jewelry, or pricy electronics. But just remember: These things can be replaced. Your life cannot be—and neither, most likely, can your retirement nest egg.
They have to die to benefit from it. This is a fallacy: Life insurance is not ultimately about how you benefit from it; it’s about how your family will benefit from it should something tragic befall you.
They’re too young. The bottom line is that everyone should at least consider life insurance; if nothing else, it can offset your funeral and burial costs and prevent your spouse or parents from having an enormous financial burden.
Don’t let one of these poor reasons keep you from speaking to a Stonepath Wealth Management representative about life insurance; contact us today to start the conversation!