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The saga of life insurance
One of my most favorite and lucrative money saving tips is shopping around.
This spring, we re-shopped life insurance, and we saved ourselves almost $1000 this year! Not only that, we extended my term coverage and added another child to the policy.
I’m a believer in life insurance. I lost my dad unexpectedly when he was just 62 years old. He was all about being prepared, all things safety related, and let’s be honest; he looked at life a little like Puddleglum. But surprisingly, he did not have a life insurance policy in place. He was in the process of looking into it, but never got it done.
This caused a lot of headache for my mother when he died (kids still living at home) and I vowed I would have life insurance policies for my family.
Ah, life. I married a guy with two diseases who is never approved for life insurance!
Up until this spring, we thought we had the best options out there for myself and our kids. My husband had set up our policies while he had a brief stint selling insurance. But since we budget every month, we are always looking for ways to cut our costs. One evening at dinner, John mentioned that our agent had left a message with him saying she thought she might have some better policy options for us. I called her the next morning.
Moral of the story: check out your policies! Look into pricing with other agents and you may end up with better coverage for a lower cost. Win/win. And please, if you are healthy and have a spouse or children, get life insurance asap.
Here’s a little secret for you.
Independent insurance agents are like your own personal shopper.
Unlike captive agents who work for a company such as State Farm, an independent agent can find you the best prices by shopping around and getting you a product specific for your needs. We found ours through Dave Ramsey’s endorsed local provider program, but you can do a simple search online for a local 5 star agency.
I know, you probably haven’t touched your policies since you set them up 10 years ago with your old pal Al at his office downtown. Raise your hand if you are loyal like me! It’s hard to “move on” if you have a relationship with one of your providers. But you are making the best choice for YOUR family, and it will be worth it.
So what kind of life insurance should you have?
TERM LIFE INSURANCE
Why? Well, I’ll let Dave explain it, because he’s kind of an expert on this one.
So as you can see, choosing to invest your money elsewhere is going to get you out ahead down the road.
Term life insurance is cheaper, and gives your family and dependents financial security in the event you pass away. They can use the proceeds to cover funeral expenses as well as all the usual bills like mortgage payments and other expenses.
This is so important, especially if you are a single income household.
How much should I have?
By insuring for 10 times your annual income, your family can invest the proceeds and their quality of life will be sustained while they get their feet back under them from the staggering loss they have experienced. Don’t forget to insure a stay at home parent. The value and savings they add to a home would cost a lot to replace.
Bottom line: this whole term idea may sound scary. But if you are investing 15% of your income, and committed to being debt free (paid off house included) you will be okay when your term expires! Your money will have been invested in much more lucrative ventures.
Who should have life insurance?
If anyone in your life is dependent on you and your income in any way – you need life insurance.
I don’t know how to effectively communicate to you my passion about this subject. I’ve seen what it is like to see someone left in the lurch because their spouse wasn’t prepared. I know what it’s like to be unable to qualify once disease hits.
If you are healthy and you have dependents, you can relieve a lot of future stress and give current peace of mind by getting life insurance.
Not to Dave Ramsey you to death, but I want to leave this story with you here. Listen to it, and then get on the phone, and make an appointment to meet with your insurance agent to review your policy or set up a new one. Your family will thank you for it.
What are you thoughts on life insurance? Do you have some? Why did you buy it? If you don’t have it, why not? I’d love to hear your story on life insurance if it was available for your family when you needed it.