Do I really need insurance?
This is the question that millions of Americans ask themselves every day. Is insurance necessary and what will happen if I don’t have it? Not having insurance can put you at risk for severe financial heart ache if you have a catastrophic event (no insurance plus an emergency surgery = mayhem). But many Americans pay for insurance without any incident. How do you know when to buy or risk it?
Let’s get a few things straight: Insurance is not a crystal ball. It will not stop bad things from happening. However, it is a financial safeguard in case something bad happens. You are buying security in the event of a storm. If nothing happens, you are just out the money. However, if something does happen, you are saved a lot more money. The average person might believe that he or she is immune from any potential catastrophes, but it is those who prepare who are smarter.
Most insurances are optional with the exception of car insurance (at this point, at least). It is a law for all drivers to have at least collision insurance. If President Obama’s health care law goes through it will soon be required for all Americans to have some form of health insurance.
These two insurances– health and car– are the most common types of insurances for Americans to carry. People can imagine themselves driving and visiting the doctor, and those who do not have insurance often see the aftermath of those decisions. Plain and simple: having insurance will save you money in the long run. You are getting insurance to save you.
Life insurance is a different game. You aren’t getting life insurance to save yourself from financial trouble. You are getting it to save your family. You see, life insurance is in the event of your death. It won’t benefit you, but it will benefit your family. Life insurance is payable upon death to those previously specified. Think of it as a monthly payment to ensure that your family will be taken care of after you are gone. This can help with medical expenses, funeral costs, or just life costs.
The problem is many Americans aren’t even thinking about getting life insurance. The tricky thing is not many people think about their death. And if they do, it rarely involves what will financially happen to those left behind.
Think of a stay-at-home mom who recently lost her husband. A payout from his life insurance could keep her and her young children from financial ruin. It is a way to provide financial protection to those you love.
You might think that life insurance sounds like a slam dunk. No risk because every one dies eventually, right? Life insurance is often sold in terms. These terms could be 10, 20, 30 or more years. The problem is you rarely know how much longer you will live. And if you live longer than your term you are out the cash.
Is life insurance right for you? Enter in your ZIP code for a free quote to find out.