Uninsurable Increases WIth Age

It's typically a fundamental truth that life insurance serves as a critical role in protecting a family from the possibility of financial hardship. In its most basic sense, life insurance is designed to protect the economic value of a human life - most commonly the "breadwinner" or majority income earner of the family, but it is also associated with business uses in the form of buy-sell agreements, key person indemnification, credit enhancement, business continuation and employee benefits.

Regardless of its purpose and notwithstanding variations of term and whole life policies, time is of the essence.

Most income producing individuals have dependents that rely on that income for the amenities of everyday life; not to mention the continuation of lifestyle, residence, education and retirement.
It is a morbid reality, but one that is paramount to plan. And in many situations, it is prior to death but after diagnosis that the hourglass has run out on the option of providing protection for one's family.

An insurance professional, recently received a phone call from a close friend asking if he still had the ability to purchase life insurance...while notifying him that he had been diagnosed with Stage 2 cancer.

Before the call, his friend came to the daunting realization of the risk he took by not buying life insurance. In the past, the two had casually discussed its growing importance, especially after the birth of his daughter and purchase of a new home. He claimed to have had plenty of coverage and decided that an evaluation was not necessary.

The window of opportunity to purchase or increase the amount of life insurance may be closed, however every option is being evaluated - primarily in exploration of the group policy with his employer.

It's glaringly obvious that an individual that dies prior to obtaining life insurance will not have death benefit proceeds - but what may be less known is that most life insurance policies evaluate your insurability with a health questionnaire and medical examination.

Unless finances are such as to alleviate the risk associated with a death or disability of an income producer, acquiring some form of life or disability insurance is a discussion worth having. And prior to any diagnosis that may make you un-insurable.