Is there anything more important than your family’s wellbeing? While some things you can not ensure (perfect health), there are other things you can (financial security). A personal life insurance policy will ensure your family will not have to struggle to survive financially after your death.
Thinking and even planning for your unexpected death is not something you ideally want to do on a sunny afternoon; so do it at night. Regardless of whether you want to or not, you need to obtain life insurance. And the sooner the better, as you never know what can happen in the future. Rates are also cheaper the younger and healthier you are.
Life insurance is obviously a serious decision and while you often go to your friends for advice with many of life’s serious issues, the article, “Life Insurance and Advice from Others” written by Jason Cunningham and posted on financial-shopper-network.com, suggests that you should not heed your friends’ advice before signing for a life insurance policy.
“Life insurance is a serious subject. There is one theme that should run through any discussion of the product. Your life insurance company hands the beneficiary a sum of money when you die. Friends and family may not only influence who you may buy insurance from, but when as well.”
For example, your good friend may tell you that the life insurance policy offered through your work is enough coverage for your family. Since you respect your friend’s opinion and intelligence, you listen to him or her.
But does your friend really know your family’s entire financial portfolio and future? The fact of the matter is that we are private by nature when it comes to personal finances. If your own mother doesn’t know of your hidden finances, how will your friend?
“The old saying ‘what's good for the goose is good for the gander,’ should not apply to your life insurance. Buying the same life insurance policy as your friend or family member could leave you severely underinsured, or maybe even over insured in this area.”
What happens if your friend advised you not to get additional life insurance coverage outside of work? Work insurance is usually limited to specific amounts that may not adhere to your family’s current or prospective lifestyle.
“Your friend may not know you took out a home equity line of credit to send Becky to Cornell this semester, or that you have $45,000 in personal debt. Your friend or family may be giving you advice that seems responsible in their own mind, but it may not be proper for your situation.”
You need to consider not only your current financial obligations but for the future as well. What happens if you plan on buying a new home in the future with a higher mortgage payment? Will your work insurance adjust to cover the higher payment if you die? It is your responsibility to obtain enough coverage so that your family can live their lifestyle without having to sell the home or drop out of college.
It is not your friend’s responsibility to financially provide for your family if you die. Do not put the burden on his or her shoulders. |
