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Anyone who has followed this blog for any length of time knows that I am passionate about life insurance. I wanted to take some time to talk about why I am so passionate about life insurance since it’s Life Insurance Awareness Month.
First, let me start by addressing the fear factor. By this I mean that there are many people who avoid talking about life insurance or will preparation out of fear that talking about it will bring about the inevitable. I say inevitable, because the reality is that we are guaranteed that we will face death; the only question is ‘will we be prepared’? The good news is that most people who take about term life insurance policies never use them (the claim rate is less than 3% – and some sources say less than 1%). Don’t let that fear stop you from protecting your loved ones.
I am most passionate about life insurance because I have learned that you don’t even have to die to use it. Many insurance agents sell insurance based on the fact that you have to die to use it. What fun is that? No wonder people avoid it. Don’t hear me wrong; we certainly want to be prepared to have our final expenses covered and to make sure that we don’t leave our family members destitute, but I want you to know that there is a light side to life insurance.
Did you know that you can use a life insurance policy as a savings vehicle? Many people aren’t aware that with the right type of life insurance, you can not only have protection in the event of an early death, but you can build a financial reserve within your insurance policy? Since that money is yours, you can use it to finance purchases such as cars, education, or even real estate and become your own banker instead of borrowing from an institution. The upside is that you will pay interest to yourself, so your money grows and if need to skip a payment you won’t penalize yourself. Also, in the unfortunate event of a job loss, or other misfortune that may leave you unable to pay your car note or mortgage (held by you) you most likely won’t foreclosure on yourself. And guest what? When you are ready to retire, you can pull money out of that insurance policy as well, and when you finish your earthly journey, your life insurance death benefit will pay off any outstanding debts you have so your estate doesn’t have to.
Now, who is a bit more excited about life insurance? If you want to learn more about the type of life insurance that I described, contact us and we will have one of our trusted partners get in touch with you to answer any questions.