Wednesday, March 28, 2012

Money – Life insurance

A morbid, but important topic…however in the end I’m sorry to say this, but we are all going to die.  Life insurance which is really death insurance…can be a tricky subject.  A company is willing to pay you big money if you die.  If you die in an accident, many time they will pay you 2 or 3 times more money if you purchase certain riders.  Crazy isn’t it?  What is truly crazy is as the purchaser of life insurance you are placing a bet that you will die, and the insurance company is betting that you will not die.  Who wins in the end?  Well, the insurance industry is a multi-billion dollar industry.  An industry like this doesn't become large by placing bad bets.

Let me get something across to you first and foremost.  You cannot get rich by purchasing life insurance on yourself.  You can make someone else rich buy purchasing it, but buying a policy on yourself to make money won’t work out very well for you.  In fact you will be disappointed.  With life insurance you are attempting to have someone else become whole from financial perspective if you lose a loved one.

My father passed away while I was in the Army at the age of 21.  No money could ever replace my father.  First of all, he wasn’t insured enough to make up for the loss of income that my mom had to deal with.  Emotionally it has never been the same.  Losing someone you have trusted and loved since you were born is irreplaceable.  He died of cancer at the age of 56.  It was equally difficult for my sisters and mother.  We have moved on, but if you haven’t lost someone who you love be I pray you won’t have to experience it for a long time.  The good thing about my father’s death was we were all together, and by his side when he passed.  We were able to say goodbye, and he asked us if he did a good job as a father.  We all said yes...of course you did great dad as we cheered him on!  He lifted his arms up in the air, and then folded them behind his head.  He was at peace.  A day later he passed away.

Life insurance, Wills, and estate planning are areas that we decide to put off because of the nature of the topic.  However, try not to put them off for too long.  If your parents or loved one tells you to fill out a will...just do it.  They are important to your life planning.  In the movies for action films they used to talk about plan B.  Plan B usually doesn’t exist or it is terrible.  Without having the right life insurance coverage,  up to date wills, and estate planning is like having no plan A.  I encourage all of you to take some time to explore the subject.  If you have questions then ask them.

About 7 years ago I did work for AFLAC and passed my insurance exam for the State of Ohio.  That license is has been expired for quite some time. However, I did learn a lot about insurance and the industry.

As a military member you have access to Servicemembers' Group Life Insurance SGLI.  This is an insurance plan that might be right for you.  I know that they will cover you in peacetime or war and at the time I served was reasonable insurance policy.  Some life insurance companies will not cover you if you go to war or perform risky activities such as skydiving…something to keep in mind.  I do remember that prior to deploying the legal office would help out with wills and you could ask insurance and power of attorney questions.  If you are deploying it is especially important to get your financial matters in order.  Personally I would review my finances at least once a year.  Tax time is a great time to plan, set goals, and review success and failures from the prior year.

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