Don't Wait To Buy A Life

Life insurance sales are flat, leaving many underinsured and unprotected. It used to be that you’d buy life insurance through an agent, pay your premium every year, and that was it. More recently, companies are going back to existing clients with in-force policies, checking to see if their needs have changed and selling additional coverage or cross-selling other products. Don’t ignore these calls: These in-force campaigns can lead to potential value to the insurer of course but also to you the consumer.

The average person doesn’t understand what they need. It’s not just the actuarial risk of dying next year. More broadly, what’s needed is assistance in going through the fundamental decision on protection, saving and retirement. Absent thoughtful advice, we spend money on a new car, a new home, or a vacation. We’re competing not against other life carriers but against other goods.

You need life insurance to protect your financial dependents–your spouse, children or parents—in the event of your death. Your employer might offer you group coverage, but you’ll likely want more.

Take you or your spouse out of the picture and imagine paying the bills–and paying for caregiving and household duties. For how to calculate how much insurance you need.

The fact is one in 5 person (men) who are 20 today will die before reaching 65. This chart shows the leading causes of death in different age ranges.




As you age—and despite that grim death chart, people are living longer—your insurance needs evolve from death benefits to guaranteeing retirement income for yourself and protection related to healthcare expenses. Time for another insurance check-up.

How are you going to cover out-of-pocket healthcare expenses once you stop working? It’s possible to build up a $150,000 health savings account as a retirement kitty—if you have a high deductible health insurance plan. But still you should look into dental and vision insurance—and consider topping it off with critical illness insurance and long-term care insurance. Don’t wait for an insurance agent to come calling—get yourself covered.