Do You Really Need Life Insurance?

Confident in your future insurability? There are no guarantees.
Confident in your future insurability? There are no guarantees.

Anyone who has a family can imagine how dying prematurely would devastate the family, including financially.  But most people fail to realize the huge financial shortfall such a death would cause, which is why insuring your HLV is so important.  At Kingdom Calling, we have clients that insure themselves for more than they can imagine is necessary because of our counsel, only to come back a few years later and say, “You were so right.  I needed much  more than I thought I would, and knowing what I know now, I think I need to increase my coverage even more.”

The common failure to realize the amount of life insurance coverage that is needed happens for a lot of reasons.  It happens because of increased personal achievement through work and an increased propensity to spend, as well as because of inflation.  With the current rate of government spending, it is probable that none of us can today buy as much life insurance as we will need once the coming inflation hits.  But we can buy as much as we are allowed and rest, confident in the fact that we have done what we could and the rest is in God’s hands.

One group of people that usually has a hard time understanding the need to insure their own death is single people.  If they have no one that they are concerned about taking care of if they pass, they might not see the need to have this insurance.  When we move into the Trunk (Savings) discussion of our Fruitful Tree, we’ll see many reasons for permanent life insurance protection, but what about the death benefit?  This should be important to everyone for one reason, and possibly for two:

  1. If you plan to start a family some day, shouldn’t you make plans to be ready for this scenario?
  2. If you have learned that you want to take advantage of the living benefits of permanent insurance, but cannot afford to buy as much of it as you would like to today, shouldn’t you guarantee that future benefit for yourself?

In both cases, the issue involved is your future insurability.  When you get life insurance, the company asks you medical history questions and gives you a short physical.  As people age, new medical issues tend to pop up more often.  If you are insurable today, you might not be so tomorrow.  When you have convertible term insurance with a good company in place, you have the right to convert this to permanent insurance no matter what has happened to your health.  And the price to guarantee these future benefits is small in comparison to the reward.

Life insurance is different than all the others because certain types have a savings component that is very advantageous, but in this section of our Fruitful Tree discussion, we want to limit the conversation to the protection (Roots) aspect of the policy and focus on the death benefit.

Tomorrow, we’ll look into these questions: What if you live too long?  Can you leverage the guaranteed fact of your future death into a financial benefit to you in your lifetime?

This post is _Part 11_ in the series The Rock.  To continue with this series, click on Pt 12.  To use this as a growth tool, you might start by reading Pt 1, Pt 2, Pt 3, Pt 4, Pt 5, Pt 6, Pt 7, Pt 8, Pt 9 and Pt 10.

Photo credit: gage131

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