Why You Need Life Insurance Even If You Think You Don’t

Are you familiar with the story of The Ant and the Grasshopper?  The gist of the story is this: during the summer the ant is storing food away for the winter, while the grasshopper is just being idle and goofing off.  Once winter comes, the ant is prepared and has food stockpiled to make it through the winter, while the grasshopper does not.

Beyond the obvious (avoid laziness), there is an important lesson here about preparation.  One day, winter (or low points in our lives) will come for all of us, and whether or not we can make it through successfully or not comes down to how well prepared we are.

This is where life insurance comes into play.  Life insurance is designed exactly for that: preparation.  In the case that you or a loved one passes away, those affected received money to help cover funeral costs, as well as living costs and such.  The wise ants among us understand this concept and stick by it.  But there are some of us that think their situation or lot in life doesn’t require them to have life insurance.  Let’s go through a couple of varying life situations and look at how each one needs life insurance.

Imagine, if you will, a working mother and wife.  She has a spouse and children that depend on her and the income she brings in.  What if she were to pass away prematurely?  How would those living expenses, bills, and unexpected costs get paid?  Your family may not have the funds sitting around to cover everything.  Life insurance would be the saving grace to help this family provide their wife and mother with a loving funeral and take care of themselves while they become reestablished.

What about those of us who are single?  We may not have a spouse or kids depending on us financially, but that does not mean life insurance is pointless.  If you were to pass away suddenly, your parents or other family members would have to step in to pay for your services, and possibly for any other outstanding debts you owed.  I am sure the last thing we would want to do is leave our family and loved ones in debt because of us.  Life insurance can help to avoid this tragic fate.

Now, let’s look at our senior community.  They have most likely reached a point where they no longer have any children depending on them financially, and hopefully have saved up enough for retirement that their spouse wouldn’t have to worry about money should they pass away.  But, once they do, there is still a large debt for the services that has to be covered.  Not to mention, perhaps you want to leave your children with a little bit of money once you kick the bucket.  Life insurance proceeds are typically income tax free, and can be acquired much quicker than typically inheritance funds can be.  This is a good route to take for many people.

To end, let’s consider the moral of the story: be prepared.  Life insurance is applicable to nearly all of us, regardless of our situation or lot in life.  It is mostly a question of how prepared we want to be.  Do we want to be ready and leave our loved ones in a good situation upon our passing, or do we want to goof off until it is too late?  Like I said earlier, winter comes for all of us, and only those that are prepared will be able to see it through successfully.

Blog written by: Andrew Jordan, Creative Marketing Specialist II for Sentinel Security Life Insurance Co.

Do I Need Life Insurance If I Am Single?

Life insurance is a wonderful thing.  It can serve as the perfect safety net for when an unexpected tragedy hits both a family and its finances.  Instead of having to pay for a funeral, living expenses, and more while losing a significant portion of your income, you can rely on the insurance policy your spouse took out.

But since I am single, I don’t need to worry about life insurance, right?

This is a common misconception that many singles have about life insurance.  They believe that it is designed for spouses and families and see no value in it for them.  However, life insurance is not just designed for married couples, but for all of us.  There are many benefits to life insurance for singles, just like there are for everyone.  Let’s break them down.

To start, take a look at the most obvious point: just because you are single now, that does not mean that you will always be single.  Many people reach a point in their lives where they meet someone, get married and start a family.  At this point your family becomes your responsibility.  Part of that responsibility is making sure that they are taken care of in the event that you die.  Thus, life insurance.

But there are those that choose to be single for their entire lives.  What about them?  Well, regardless of your marital situation, your mortality remains.  At some point in the future we all pass away.  Someone will have to pay for our final expenses, whether family, friends, or whoever.  I would not want to leave them with a massive bill without providing them a way to pay for it.

Let’s step away from being so morbid for a minute and assume our expiration date is somewhere in the distant future.  Even so, as we advance in age, our health is most likely to decline.  The two biggest factors in your life insurance premiums are age and health, meaning that if we start a life insurance policy while we are younger and healthier, our premiums will be significantly less than if we wait until these factors are already a large problem.

Think about this, too: just because we do not have a special someone in our lives does not mean we do not have financial responsibilities to others.  Maybe Mom and Dad will need someone to provide for them as they go up in years.  Maybe we enter into a business venture with a friend or business partner.  What happens to these people if we leave this world sooner than anticipated?  Life insurance can help mitigate the damage.

Life insurance is a powerful tool for all of us, whether young or old, single or not.  Don’t let anyone fool you into thinking that it is only for certain people in certain conditions.  It can benefit all of us, regardless of our circumstances!

Blog written by: Andrew Jordan, Creative Marketing Specialist II for Sentinel Security Life Insurance Co.

Life Insurance: Why Now is Better than Later

Being a young adult these days is hard.  Life throws so many things at you with blinding speed: work, spouse, kids, mortgage, etc.  Here we are, expected to be able to run with these things, when just a few years past we had to ask for permission to use the restroom at school.  While some of us can easily switch from band shirts and headphones to dress shirts and ties, we can all agree that oftentimes it feels like it takes all our time and energy just to keep up with an adult life’s pace.

With this being the case, it is easy to overlook something as vital as life insurance.  We are already juggling around so many other things.  Why tempt fate by throwing in another ball, right?  I will take care of that stuff somewhere down the road.  Besides, isn’t life insurance something retired people are supposed to be worrying about, not 20 to 30 year olds?

Nope.

The best time to get life insurance is while you are young.  But, regardless of your age, the time to get life insurance is now.  Contrary to what you may hear, life insurance isn’t something you start working on once you are getting up there in years.  Let me explain why.

The most prominent reason is that the older you start, the more your premiums will cost you.  In general, life insurance premiums get locked in when you start, while the amount of the premiums are based on your age when you start.  The premiums tend to have a slight increase based on your age up to age 40, but once you get past that, the increases go way up.  Starting while you are in your 20s versus your 50s or 60s could be the difference between paying $13 a month to $50 a month or more.

Make sure you consider this as well: the time between when we start working and when we retire are our prime earning years.  This is the time when we progress our career and save up the money to take care of ourselves and our loved ones once we decide to call it quits on our jobs.  I don’t want to be Mr. Negative here, but suppose the worst happens and you pass away well before you and your family were planning on?  What about all the money you would have been able to earn and save and provide for your family?  While life insurance doesn’t take away the pain of loss, it can at least mitigate the financial damage done by such a disaster.

Let’s be honest: one of the main reasons that we may choose to put this off is because money is generally a little tighter when we are younger.  So, while life insurance is cheaper if we start young, we may still think it is outside of the realm of financial possibility.  Usually, this isn’t the case.  Most people are actually pretty surprised to find out how cheap life insurance can be for young and healthy people.  Take the example from above.  Say your premiums are $15 a month for decent coverage.  That is about $.50 a day.  I think most of us should be able to afford safety and security for $.50 a day.

Life insurance is important.  No one like to think about their own mortality, but we need to face reality.  Sadly, we are not kids anymore.  It is time to make mature and responsible decisions to protect ourselves and those we care about.  We cannot allow ourselves to be without life insurance.  Now is the time.  Don’t put it off.  I promise you will be happy you didn’t.

Blog written by: Andrew Jordan, Creative Marketing Specialist II for Sentinel Security Life Insurance Co.