You Reap What you Sow...Advice for Life Insurance

Every month we talk to many people in our agency about the importance of Life Insurance. Almost everyone has some need for Life Insurance. It is an important part of everyone’s Financial Plan, but it can be very confusing. There are many questions which need answered when looking into any type of Life Insurance, and we try to help people navigate the puzzling world of Life Insurance. Some of the basic questions that we hear are:

• What is the right amount of coverage for me? 
• Am I paying too much? 
• Is it too early to start thinking about Life Insurance?

Read on for valuable advice on Life Insurance and if you'd like to talk to someone, contact Baker Insurance now.

We recently came across an article that ran in the Boston Globe last month that was titled “The 7 stupidest things we do with money”.  While the overall list of “unwise” things that we can do with our money is most certainly much longer, the list is undoubtedly a good place to start.

The list that the Boston Globe writer had in the article was:

1. Having no clue how much to spend
2. Not using debt to your advantage
3. Spending or Borrowing just because you can
4. Not planning ahead - Way ahead
5. Going along with what your friends do
6. Letting love rule your wallet
7. Refusing to ask for help

While the Boston Globe article goes into detail about each of these items, the three things on this list that we come across most often in our insurance agency are; 1-Having no clue how much to spend, 4-Not Planning Ahead, and 7-Refusing to Ask for Help.

1. Having No Clue How Much to Spend

The most important part of purchasing a Life Insurance policy, as with anything financial, is to work within your budget.  There are all sorts of equations, and questionnaires to help people see how much life insurance they need. Regardless of what number is generated, the person has to stay within their budget. A Life Insurance policy that someone purchases, but cannot afford, is of no use. To buy a policy and let it cancel because you cannot afford the payments does no good for your loved ones. Find the amount that is right within your budget and find a policy that works with that. Having some coverage in force is better than having a large policy that has been cancelled. 

4. Not Planning Ahead, Way Ahead

We get calls in our agency every week from people who are retiring and are inquiring about Life Insurance.  Most of the time, either health conditions or the higher premium, prohibit people from purchasing a Life Insurance policy in their 60’s. Many people think it is way too early to think about Life Insurance in their 20’s. But that is the time to look for a policy. The premiums are much cheaper at that age and most times they have not encountered any health conditions that made them ineligible. It is even beneficial to purchase policies for children.  Both of my children have had health conditions at birth that has made it very difficult to purchase Life Insurance policies for them. While that may not be the case for everyone, it shows that planning far ahead is a needed part of financial planning and life insurance.

7. Refusing to Ask for Help

One thing that we can all agree on is that Life Insurance is confusing. There are different policies, various legal regulations, and a ton of paperwork to review. That is why we are here. We can help you navigate the different types of policies and what might fit your situation the best.  While you have to make the ultimate decision to see what fits your budget and situation the best, we are here to make suggestions and answer questions to help you find a policy that meets the needs that you have.

Contact Baker Insurance today to speak to someone about your life insurance options.