Get Life Insurance While It's Cheap!Submitted by Robert McEachern & Scott McEachern on September 12th, 2018
When a young couple has their first child, they immediately see the value in life insurance. Someone they love and have the responsibility to protect now relies on their income. Children aren’t cheap to raise and recent studies have shown it can cost more than $250,000 to raise a child to age 18.
But what if you don’t have children? What if you are young and healthy? What if you don’t think you need life insurance? Below we’ll discuss three scenarios where having life insurance while you are young and healthy just makes sense.
Scenario 1 - The Diagnosis
About 1 month after we delivered a life insurance policy to a new client, she notified us that us that her father had been diagnosed with a hereditary disease. If she waited just 4 or 5 weeks longer to apply for life insurance, the diagnosis could have prevented her from getting insurance at regular rates, or perhaps all together!
Scenario 2 - The Gift
The average cost of a funeral is close to $20,000. If you were like me when you graduated college, it’s more likely you had $20,000+ in student loans, not $20,000 sitting in the bank. So who has to pay for your funeral? Your parents or your spouse, likely. Doesn’t it make sense for $10-$12/month to purchase a life insurance policy to at least protect your parents financially? Remember when they got you socks for Christmas that one year? Time to pay them back with a boring, yet useful gift! Then when you get married later in life, you can change the beneficiary to your spouse and/or children.
Scenario 3 - The Bankruptcy
A client declared bankruptcy a number of years ago while going through a separation, which put the application process on hold until the bankruptcy had been discharged. This client had a child and she wanted to use life insurance to financially protect said child, but couldn’t get coverage at regular rates at that time.
You never know when any of these situations could happen. There are a number of life events that could prevent you from getting life insurance when you need it most. It’s best to get insurance early, while it’s cheap, even it’s before it’s needed.