It is not uncommon that I meet with a client who does not have life insurance in place, but plans to obtain life insurance “down the road” – whether it be when they are done having children, or feel they are in a better place to budget for the premiums. Celine Kitzenberg, a financial services professional with Promus Financial Group, assists clients in obtaining life insurance. She has seen, firsthand, what costs there may be in waiting to obtain life insurance, and also the great benefits in having planned ahead.
Life Insurance: The Cost of Waiting
It isn’t easy being an adult. Sometimes you have to make hard decisions—like what to do with your limited financial resources. Is it better to save for your children’s education, set aside funds for retirement, or prepare for unexpected events like a medical emergency?
Given these—and all the other demands on your money—it’s easy to see how life insurance can get lost in the mix. What you may not realize, however, is just how costly delaying the purchase of life insurance can be. In fact, waiting just a few years could have lasting repercussions. Consider the following:
Your family depends on you—and your income.
While nobody thinks it will happen to them, tragic events can—and do—take place every day. Therefore, every day that you are not insured puts your family’s lifestyle and future at risk. After all, how long do you think they could get by without your income to help support them? With life insurance, your loved ones will not lose their financial security if something happens to you.
Life insurance gets more expensive, and harder to get, the longer you wait.
Since life insurance premiums are based, in part, on your age and health, the longer you wait, the more you may ultimately pay for coverage. Also, if your health begins to fail, you may have to overpay just to get coverage—if you can qualify for insurance at all.
Whole life insurance builds cash value.
In addition to paying a death benefit, whole life insurance policies accumulate cash value on a tax-deferred basis. As long as the policy remains in force, you can use this money to start a business, buy a new home—anything you want.[1] The sooner you start paying policy premiums, the faster your cash value may grow.
At first glimpse, life insurance may not seem like an immediate need. But if you are married, own a home, or have children, there are plenty of compelling reasons why purchasing a life insurance policy should rank high on your list. Take a moment to look into it, and see how easy it can be to give yourself—and your loved ones—this valuable protection.
A True Story:
One of my very first clients was a woman I met many years ago. She was a healthy, happy, married, working mother of two. She was skeptical about purchasing life insurance. After some discussion with her husband, she took my recommendation, and purchased enough life insurance to replace her (almost 6 figure) income.
Between then and now, they have welcomed a 3rd child into the world, her husband’s company has doubled in size, and they have moved homes.
Last year, she called me and asked how much life insurance she had. She had recently been diagnosed with stage 4 cancer, and although she had a plan to fight the cancer with a great team of doctors by her side, she wanted to make sure that her family would be taken care of.
After talking to her about her insurance plan and the additional features within her policy, she was so relieved to know that her family will be taken care of in the event of her death, and that her husband and three children will not suffer financially on top of the grief of losing their wife and mother. Because of her insurance, she could retire from work to spend time with her family, and build lasting family memories. She was able to accelerate part of her death benefit now to help pay for daily living expenses and relieve the financial burden of needing to work.
In addition to planning financially, she and her husband renewed their estate planning documents to coincide with their financial and philosophical wishes for their children. They put their trust in their advisors, to help them plan ahead to the best of their ability.
Working with this family in a time of need reminded me that although there is a tangible cost to insurance premiums and legal representation, having peace of mind is truly priceless. Especially when families need it the most. To protect your family legally and financially is to provide true peace of mind to the ones you love. Today, my client is still battling cancer. She is strong, fierce and joyful for each day.
The material contained herein is for informational purposes only, and is not intended to create or constitute an attorney-client relationship between Schromen Law, LLC and the reader. The information contained herein is not offered as legal advice and should not be construed as legal advice. This educational third-party article is provided as a courtesy by Celine Kitzenberg, Financial Services Professional, New York Life Insurance Company. To learn more about the information or topics discussed, please contact Celine at CKitzenberg@ft.newyorklife.com.
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