The Importance of Life Insurance

Family
The main reason for buying life insurance is LOVE.  There are other less important reasons, such as business continuation, funding buy-sells, paying estate taxes, but they all boil down to love.  Why is it so important?  Try to imagine for a moment those left behind and the financial burden they would have with out some life insurance.  The average funeral costs over $5,000, not to mention the left over medical bills that always seem to be present after a death.
My cousin recently lost his 19 year old daughter due to a tragic ATV accident.  The family is sending money because there was no life insurance, and BEFORE the funeral arrangements could be made they had to show that they had at least $3,000 available for costs.
We all insure our homes, and cars.  Perhaps it is because we are required to, by law, or by contract.  It is too bad we are not required to purchase at least some life insurance.  Imagine for a moment you were given a ATM machine; a very special ATM machine.  This machine would let you withdraw a specific amount of money each month.  All you have to do is spend 40 hours of your time each week cleaning and polishing it IE your  job.  Would you insure the machine?  This machine doesn’t need electrical power to run but it can permanently quit for number of reasons.  Would you insure the machine for 1% of the money it produced?
That is what life insurance does.  It provides cash for the family left behind when an income producer dies.  Term life insurance is much less costly than people realize. 
For Example:
Male Age 40 $100,000 coverage  $168 per year
Female Age 40 $100,000 coverage $146 per year
THAT IS LESS THAN $.50 per day for $100,000 cash paid to the family upon the insureds death.
Both of our “main” insurance carriers ERIE & AUTO-OWNERS offer discounts on the home and auto insurance if the family buys life insurance from them.  That lowers the cost of the insurance even more!  Different people will pay different rates some higher some lower due to their health, family history and other factors.  Send us an e-mail for a quick and confidential quote.  We can get the same quotes, SAME RATES, that are quoted from the insurance web-sites.

Comments

  1. says

    You make some great points about the importance of life insurance. However, you’re really underestimating the amount that families need. Insuring your life is like insuring your income. If you make $50K a year, then having $100K in life insurance is only insuring 2xs your income. Won’t your family need more? Especially if the kids are young? Life insurance is so inexpensive that it doesn’t make any sense to me why anyone wouldn’t buy at least 10xs their income.

  2. Brian Lampton says

    That is correct. Financial experts have different ways to calculate how much life insurance a person should have. Some believe in the human life value approach, using some multiple of the income produced, some advocate using the multiple and eliminating all debt. Some others suggest buying the maximum amount of insurance a compnay will allow. The insured also has imput as to how much insurance they feel they can afford, and what kind of insurance they want to purchase. I don’t want to debate these methods because I feel they are all good methods.

    The purpose of the article was not meant to discuss how much coverage is needed, or what kind of policy is needed or desired. I wanted to point out how important is is that some life insurance is purchased. I’m sure all experts would agree that SOME coverage is better than none. I wanted to illustrate how inexpensive SOME coverage could be. I want people to think about the importance of owning or even “renting” some life insurance and to take action to purchase some coverage for the benefit of their family and loved ones.

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