I am currently on my way to completing my newest book, Potential Millionaire (English Law Enforcement edition) and in the book I explain several reasons why we should have life insurance. However, I do not limit the conversation to only life insurance. I write about long and short-term disability and how having accidental-death and life insurance can solve potential problems when there is an unexpected death. Not only will you provide for those you leave behind, such as your spouse and kids, but you will enable them to pay debts like the mortgage and tuition. If you have insurance, they will not be forced out of your home if your income disappears due to death. Imagine if your significant other passed away and you are left with small children. Do you have an idea about how much it would cost for you to keep your current life-style?
I am an advocate for insurance; however, I do not believe you should over insure yourself. You should have appropriate insurance for your personal circumstances. Combining investments with insurance has its place, but I think it seldom works to you advantage. To buy appropriate insurance there are many factors that should be considered, such as what stage of life are in at the time of purchase. When possible, life insurance should be revisited to determine if you have too much or to little insurance. There is a rule of thumb out there that says to buy eight to ten times your salary. That would be fine if you needed that much. If you are in retirement and have done well for yourself, are you at a point where you are self-insured and do not need life insurance? If you are an only child with no heirs, do you need all that insurance? Life insurance may be useful in your estate planning or to leave a legacy of sorts.
I have a will and a power of attorney in case I become incapacitated. I have no debt and have reached financial freedom. I do have a job that I love and life insurance is a part of my financial planning.
Below are some facts obtained from insurance websites for you to consider. Remember we all have Potencial Millonario.
Felix A. Montelara
Author: Potencial Millonario
Consider these facts:
FACT: Thirty percent of U.S. households have no life insurance at all; only 44 percent have individual life insurance.
FACT: Fifty percent of U.S. households (58 million) say they need more life insurance.
FACT: Consumers who believe they need life insurance, 86 percent haven’t bought it because they think it is too expensive.
FACT: Among households saying they are likely to buy life insurance in the next 12 months, 35 percent say the reason they have not yet bought more life insurance is because no one has approached them about it!
Do you know what the most important factor is for people considering purchasing life insurance?
According to a 2013 Barometer Study, getting the proper amount of coverage and understanding what they are buying were the two biggest factors when consumers were asked this question.