Why You May Not Need Life Insurance (and how COVID-19 affects this)
Many of our clients have been asking the question: should I get life insurance with everything happening in the world?
Our response? Maybe. Here’s why:
We believe that life insurance should be a temporary expense for our clients. The purpose of life insurance is to lessen the financial blow to your family and loved ones if you were to pass away.
Why is there a temporary need for life insurance? We believe you are an intelligent person, working hard to save up for retirement and build wealth for your family. When you put enough in the bank (or investment accounts or real estate or your safe in the basement), you have reduced the financial burden your family would experience if you were to pass away. In other words, your nest egg would continue to provide for your family if you were no longer able to provide.
Therefore, as a bridge from now until you have built up your nest egg, we recommend purchasing a term life insurance policy that will bridge the gap. At Trumble Agency, we DO NOT recommend whole life policies (an expensive life insurance policy that never goes away), because these sorts of policies assume you will never have a nest egg saved up. We do not want to bet against you or assume that you won’t work hard to build wealth for your family. At Trumble, we believe in our clients and encourage them to be disciplined in managing their money.
Therefore, term life insurance (life insurance that lasts for a specified period, bridging the gap) is a wise and cost effective way to protect your family as you work to build wealth.
Once you have a sufficient nest egg, you no longer need life insurance! If you believe you have enough saved and invested, then your family is set up to be financially stable, even if something were to happen to you.
If that is you, congratulations! If that is not you, that is the goal we are working towards. We look forward to the day you call in to cancel your life insurance policy because you no longer need it!!
If you are interested in an evaluation to see if you may need life insurance, please simply email email@example.com and we can set up a call or a secure Zoom video meeting to discuss if you need life insurance or to celebrate with you that you no longer need it!
Life insurance companies have been tightening down their product offerings due to COVID-19, however, we have several life insurance companies that are still open for business we are placing our clients with.
P.S. If you know that you do not have enough in a nest egg but believe life insurance will be too expensive for you, the cost of life insurance is typically much less than what most people think. We’d be happy to run numbers for you so you can have accurate information to make an intelligent decision.