All He Got Was a Quote! The Importance of Life Insurance
Posted in Category: Estate Planning, Life Events
Tagged with : Estate Planning, Life Insurance
As a financial advisor of 30 years, I’ve spent a lifetime talking to military and civilian families about financial planning, investments, and securing their future. Most days ended with a sense of accomplishment knowing I provided meaningful financial advice and peace of mind to the person on the other end of the telephone.
But there were days when some conversations are painful.
Conversations like the one I had with a grief-stricken wife whose husband passed away suddenly in a tragic accident. She called hoping he had left behind a life insurance policy to take care of her and her two young boys. You can only imagine the emotions running through her. You could hear the pain in her voice and feel the weight of financial uncertainty as she was grieving her loss and comforting their children.
Finding the right words in this situation is nearly impossible, but having to say, “I’m sorry, all he got was a quote,” was simply devastating. A life insurance quote signified his good intention to protect his family, but unfortunately, had never materialized into a policy.
Sadly, this kind of conversation is not uncommon, and it’s something that stays with you. So, how can you avoid leaving your loved ones in this unfortunate situation?
The simple answer is secure adequate life insurance for your situation, but let’s address the common reasons many people stop at a quote. In my experience the roadblocks come down to time, money, and health.
Getting a quote for life insurance is a relatively quick process and can be done in a matter of minutes. However, turning the quote into an active policy can take time. Insurance companies often require an application, medical exam, acceptance of the policy, and payment. These steps can take days, weeks or even months. It’s important you don’t drop out of the process before securing the policy and your family’s financial future.
Peace of mind isn’t always free, and neither is life insurance. Finding the dollars to pay for premiums might require some sacrifices in your budget. Alternatives could include maximizing employer provided coverage like Servicemembers Group Life Insurance, leaning on other investible assets, or adjusting the type or amount of coverage you are purchasing. Do whatever works for you. Remember, some protection is normally better than no protection at all.
Finally, the last obstacle to overcome is health. Many private life insurance policies require a health exam or screening. The results of these tests will impact your premiums and can even lead to the insurance company declining your application. Age also plays a significant role in the underwriting process. You will never be younger than you are today, so don’t wait until it’s too late or your health deteriorates to apply and secure the policy.
The bottom line is getting a life insurance quote is a great starting point, but it should not be the endpoint. Don’t let a simple quote be the only legacy you leave behind.
Visit our Life Insurance learning guide to learn more about how life insurance works, the different types of policies and calculating how much coverage you may need. Start now and create a secure financial future for your loved ones.