For many families, it seems like life insurance is a secondary consideration in their own financial planning. Many realize that it is important to have, but many view it as something they’ll get if they have enough money left over in the budget. This thinking could turn out horribly in the event of a premature death of a family member, often leaving the surviving family in a very difficult situation.
When families commit to purchasing insurance, they often make the mistake of viewing it as a commodity, getting whatever is cheapest. In reality, it should be viewed more like buying healthcare. When you become ill or injured, you seek out the advice of a doctor to perform a thorough examination, make a diagnosis, and prescribe a course of treatment. The course of treatment or medication that is prescribed may be a commodity, but it was recommended by the physician to best treat your individual situation.
In the same manner, an independent insurance agent will meet with you, diagnose your needs, and provide recommendations of what products will best meet your needs. If they’ve done their job correctly, they’ll have recommended a product that will best suit your particular needs, with the least amount of cost. They will also be able to provide you with a great deal of information on the insurance product itself, as well as plenty of background on the long-term health of the company.
It may seem silly to think about prescribing yourself a medication or diagnosis, but there’s plenty of information available that attempts to help people do just that. But oftentimes, a simple visit to a doctor will calm a patient’s worst fears, and reveal a much more simple diagnosis and solution.
Similarly, there is host of companies out there that are trying to sell insurance as a commodity, often to the long term detriment of the buyer. Any life insurance purchase should be considered as a long term investment, and there are a great deal of variables to consider: purpose of coverage, current age and health, long term income needs, and your ultimate estate planning objectives, just to name a few.
If you are considering purchasing a life insurance policy, seek out the advice of a qualified, independent professional, and make sure that you clearly communicate your needs to them. When we work with clients on life insurance planning, it is critical to get to know our clients, as well as their goals, so that we can provide the best recommendations possible.