Life Insurance - The Good, The Bad, & The Ugly

bhushan by bhushan pandey

Published Sun, Jun 4th 2017, 18:30 | Fitness


The Good.

If you have ever received a large check in the form of life insurance proceeds after a loved one has died, you understand the "beautiful sadness" that is felt.

When the check arrives it does not ease the pain of your loss. Rather, it adds to your fond memories of the loved one. This person cared enough about you and your family that he/she wanted to ease the financial impact which their loss of life would surely create.

A good example of this would be the woman with an infant child who purchased enough life insurance, not only to help pay the bills, but enough to make certain the child would be raised by the proper loved one. Perhaps, she wanted her mother or a sister to help raise the child, but that person could not afford the loss of income. Properly planning, she left enough money to reimburse the care giver's loss of income. This type of planning shows her devotion to the child.

The man who leaves an extra $20,000 to be set aside and used exclusively for the expenses of a wedding, will not only be reminding his little girl "I love you", but will also be saying, I'm still with you.

The Bad.

An improperly planned future is both bad and sad. One's entire financial situation should be analyzed and protected. A person buying a $1 million whole life insurance policy, rather than a disability or income protection policy and a term life insurance policy qualifies as bad.

Would it make much sense to purchase Claim Settlement Ratio and have no health insurance? Would purchasing cancer insurance before disability be intelligent? These types of decisions are made every day by people who either do not think or do not know better.

The Ugly.

Doing absolutely nothing, or making financial decisions without receiving professional advice, results in the ugliest of situations. Far too many people take whatever insurance is offered by their employer and think they have enough. Show me an entity providing free benefits to all of their employees, while making certain that each individual is set for life financially and I'll show you a member of the United States Congress or Senate. (Sorry. I digress).

The insurance industry estimates that over 70% of the people in United States have never met with an insurance agent. This is beyond ugly. It's stupid!

After 33 years in the business, I still find occasion to request advice from an associate. The industry is constantly changing. For that reason, each state requires continuing education to make certain an insurance agent remains current on these changes. Why would the average person, without any insurance back ground, try to make these decisions alone? Please don't. Wouldn't you prefer your loved ones feel a "beautiful sadness" after your death. I would think it much better than sadness...and misery because the family cannot sustain the life style which it enjoyed previously!