Life Insurance Protects Families: A Sacramento Agent’s Story

Posted by on Sep 12, 2011 in Featured Articles. | 0 comments

I have been providing financial services and products for nearly 9 years and it wasn’t until this last year that I realized the enormity and significance of my role in people’s lives and families.

Two Key Events:

Birth of a child,

My wife and I had our first child.  Witnessing the growth of my daughter over this last year has made me realize my responsibility, as a father and a husband, to protect and provide for her and her mother.  There is no greater joy one can feel than the love of their family. In my case, the love of my child, my wife and our family pet.

I realize I am no different than any other parent out there, its common sense that I protect my family’s well-being, but I started thinking about what would happen to them if I were no longer here.  No one wants to think this way, but would they be ok financially without me in the picture? We are a young family, the answer is no.

In an ideal world, I’d want to give my wife every opportunity to raise our daughter with every financial advantage, as if I were there.  Before I had a family, I had no life insurance. Once I realized the needed to protect my family, I immediately submitted applications to insurance companies. I was approved, picked the carrier that had best rates for my personal insurance needs and situation, and chose the right life insurance product for my insurance requirements. I chose term life insurance because it is the most affordable form of coverage.  Because my youngest child is 1 years old and I want her to be insured until she is at least age 18, I chose a 20 year level premium policy.

Having a 20 year term policy to protect my family is weight off of my shoulders. I can go to sleep every night knowing that my wife would be financially equipped to raise our daughter, if I were not here tomorrow.

Unexpected death of a friend,

Last year one of my best childhood friends died in a car accident.  He was 33 years old, had a son and a wife who was pregnant with their daughter at the time of his death.  He also had a young family, therefore more bills and liabilities than assets and savings.  He also had no life insurance.  The financial welfare of his family was directly dependent on his income and now it was gone, social welfare benefits were all she had to provide for their family.

Life insurance would have helped his widow, and friends, cover his final arrangement costs and other expenses.  My heart goes out to any mothers who lose their husbands and must assume both roles.  Any full-time homemakers reading this, it is essential that you make sure your spouses have a policy protecting the family.

Life Insurance Awareness Month:

Life Insurance Awareness Month reminds me that it is my responsibility as an agent, to approach my work with the principle that I have a huge impact on the lives of people and their families. Virtually no one addresses their insurance needs until an agent (someone like me) compels them to think about it.  I believe my contribution is a service on behalf of the many who are unintentionally dependent on my initiative to approach them on this subject.

I sincerely believe that I make a difference in peoples’ lives, I protect families.

Steps for getting coverage:

Step 1: Determine how much life insurance you need. Start by figuring out how much of your income would need to be replaced for your family to maintain its standard of living. Add up your family’s current and future financial obligations and subtract from that number the financial resources that will be there when you’re gone. The remaining number is a good target to shoot for when buying insurance. If you’d like help with the numbers, the nonprofit LIFE Foundation has an easy online Life Insurance Needs Calculator that can help you determine how much coverage you need. Find it at www.lifehappens.org/lifecalculator.

Step 2: Decide what type of insurance you need. There are two main types of life insurance: term and permanent. Both offer advantages, but the kind of coverage that’s right for you—term, permanent or a combination of both—will depend on your personal situation and financial goals. There are policies available to meet virtually every budget and need. To get a better understanding of what might be right for you, use the LIFE Foundation’s interactive product selector at www.lifehappens.org/whatkind.

Step 3: Understand your buying options. You have several options when it comes to making your life insurance purchase. There are insurance professionals in the community who will sit down with you, free of charge, to assess your life insurance needs, and then recommend the type and amount of coverage for your situation and budget. You may also be able to obtain life insurance through your employer. Check with your benefits manager at work to see what your options might be. Additionally, you can purchase life insurance online through one of many insurance websites, which typically offer policies from a multitude of insurance companies.

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