Life insurance is often deemed as a touchy subject to discuss, this is because it tends to focus on the untimely death of one party, usually it being the main breadwinner in the home. Unlike other insurances such as car insurance, having life insurance is not a mandatory requirement. This is only the case for those select individuals who decide to purchase a home and are obtaining a mortgage. To secure themselves, lending institutions require individuals to have some form of life insurance, whether it be whole life of term life.
According to the World Wide Web, it defines life insurance as “an insurance that pays out to a lump sum of money at the death of an individual or after a certain time period.” It was also defined as “a contract between an insurance company and an insurer, where the company agrees to pay a beneficiary a sum of money upon death of the policy holder in exchange for a premium.”
As mentioned earlier, those who are faced with certain situations will have to obtain life insurance throughout the course of their life. On the other hand, there are others who won’t and it is up to insurance agents to explain the benefits of life insurance to these individuals. They are tasked with the job of providing a potential client with as much knowledge surrounding life insurance and clearing up any misunderstandings they may have heard from family and friends about said life insurance. We understand that life insurance sometimes can be a tough sale, however, forcing individuals by driving fear into them is not the best measure to obtain new clients. Also, looking down on clients because they have not purchased is not best practice, understand that either a client is simply not interested and give them some time. You can always follow up in a year or every other year.
The benefits of life insurance are straight forward and were explained briefly in the definition. Life insurance is put in place to prevent a family from struggling in the event the main breadwinner passes away suddenly. The life insurance policy will allow the family to maintain the same lifestyle they were living before the policy holder passed away. Some life insurance policies in such cases can also help with paying for funeral expenses and clearing any debt this individual may have had. This job can become uncomfortable as agents sometimes have to get deep into the personal life of an individual.
Life insurance can also be used as a savings plan or even an additional pension plan. Some policies are designed to pay you out a lump sum of money at a certain age. That money can be used for many different things, but essentially it will be yours, tax free, depending on the policy you have.
Unfortunately, there are some myths surrounding life insurance that hinder people from obtaining the right coverage, leaving the average individual to think an insurance agent is only looking for a sale, but follow carefully. Some of the biggest misconceptions surrounding life insurance are; 1) a person does not need it, 2) they are on their parent’s policy, 3) they have it as work already and last but not least, 4) they are too young. We will briefly explain two of these and why we believe they should not be excuses.
- I’m already covered at work.
While this may be the case, persons should always consider that an employer can take away this benefit at any time. It is not mandatory that they provide it. Having your own set aside is always the best option, even if it is also a small amount to cover the basics. Another factor persons should consider is the possibility that they may not be in the same job forever. No one has forever put down and a change of jobs is always a possibility. If that happens, having your own policy ensures you don’t have to start over, or settle for less.
- I’m too young.
Health and age play a huge role with life insurance in many different way. Some believe that because they don’t have any debts, children or spouse that they don’t need it. While this is an arguable point, life insurance is much easier to obtain while you are young and healthy and it is also cheaper. Taking out a small policy for yourself at a young age helps you understand a sense of responsibility. You also have the option to increase the policy as your life changes to accommodate anything that may arise as you get older, for example children.
All in all, obtaining the RIGHT type of life insurance coverage should be on your priority list. By finding the right agent who has your best interest at heart, this task should be much easier for you. Have more questions on life insurance? Go ahead and give us a call today at 1-246-537-0140.