Welcome back to the Bull Pen. You know, Benjamin Franklin once said "In this world nothing is certain but death and taxes." Sad but true Ben. Unfortunately I can't help you escape either fate but I would like to share with you some thoughts on how to ease the suffering for your loved ones. You know I am a big fan of protecting what matters most. I guess I should be as I am father, husband and insurance agent.
About now, you are probably thinking I am trying to sell you something or remembering the Woody Allen quote "There are worse things in life than death. Have you ever spent an evening with an insurance salesman?" For those of you that are still with me let's get started.
According to the Life and Health Insurance Foundation for Education (LIFE), many Americans do not have adequate life insurance protection. Perhaps, you may think you already know the facts about life insurance - so some of the statements below may sound familiar to you. But, these "facts" are actually myths. As September is the third annual observance of Life Insurance Awareness Month, the LIFE organization, in an industry-wide effort with member companies, including Allstate Life Insurance Company and Lincoln Benefit Life Company, would like to help debunk some of these life insurance myths and help to provide you with facts to consider as you review your individual situation.
Myth #1) Singles or couples without kids don't need life insurance. Fact: Life insurance can help provide for loved ones in the event of death, even for those without children. For example, people in this group may carry debts that they would prefer were taken care of rather than taken out of assets left to their loved ones. Still, others may use life insurance proceeds to help nieces, nephews, cousins or siblings achieve their financial goals. For a modest premium, life insurance can help to provide for those who are left behind.
Myth #2) Life insurance is expensive. Fact: Term life insurance, which is life insurance purchased for a period of time, can be very affordable for many people. For example, a healthy, non-smoking, 35-year-old female who has a good family health history may be able to purchase a term life insurance policy from Lincoln Benefit Life Company with a $250,000 death benefit for an average of $14.66 per month, for the first 10 years of the policy term. Or, she may be able to purchase a term life insurance policy from Lincoln Benefit Life Company with a $500,000 death benefit for an average of $14.88 per month, for the first 10 years of the policy term.* Either way, the premiums are approximately the price of two movie tickets per month!
Myth #3) Stay-at-home parents don't need life insurance because they don't draw an income. Fact: While a stay-at-home parent may not provide an actual paycheck for the household, they do provide services that could cost tens of thousands of dollars to replace. These include: the cost of day care, a chauffeur or taxi service, a cook and a home cleaning service to name a few. An individual life insurance policy could help to ease the burden for the family if the stay-at-home parent should pass away.
Did you know that if you had to hire someone to do the things your stay at home spouse did, it would cost you quite a hefty sum. As a matter of fact, the national average for a full time homemaker runs between $64,000 - $174,000. Don't believe me? I have attached a link below that helps you calculate the hidden paycheck.
http://swz.salary.com/momsalarywizard/htmls/mswl_momcenter.html
Myth #4) You can take your life insurance policy with you from job to job. Fact: Typically, group life insurance purchased through an employer isn't portable - meaning if an employee leaves the job, he or she is probably also leaving the life insurance protection behind. However, if you own individual life insurance policies purchased through an insurance agent or a financial professional, leaving a job will have no effect on the coverage provided by them. So, in that case, if you change your job, you would still have your life insurance policy even if you no longer have employer-provided group life insurance.
Having a policy through an employer is also becoming a rarity. According to a 2004 U.S. Department of Labor Bureau of Labor Statistics Employee Benefit Survey, fewer workers have life insurance benefits. The number has declined eight percent since 1999, from a high of 56 percent to 48 percent in 2004.
Myth #5) You don't need life insurance once your children are adults. Fact: Life insurance can help achieve a goal of leaving an inheritance to children or other loved ones or help relieve the burden of paying for final costs such as a funeral or final medical bills.
Don't let these life insurance myths deter you from making sure that you have adequate life insurance protection. Take a few minutes to review your current life insurance coverage and consider buying an individual life insurance policy if you don't currently have one.
Let's face the facts; we have all seen the impact an untimely death has on the remaining family members. Personally, I wouldn't throw my leg over my scooter without knowing that should anything happen to me, my family would be protected. Do yourself and your family a favor, call your insurance agent and investigate what options are available to protect your loved ones.
If you don't have an agent, I can help. My name is Dean Akey & I sell life insurance. Take that Woody. You can reach me at 630-232-9811 or drop me a line at deanakey@allstate.com.
Well, that's all I have to say about that. Until next month, enjoy the ride.
Dean "Bull" Akey
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