September is Life Insurance Awareness Month. It’s a time to assess your personal financial situation. Do you have a family? What is the one thing you wouldn’t want them to miss? Now that you have that in mind, what would happen if you aren’t here to provide for them? Would they miss out on that experience, event or lifestyle that you just thought of?
Protect Today
People often think “I’m young, nothing will happen to me” or “I don’t need insurance yet, because we don’t have any kids,” but insurability isn’t guaranteed. If a major health incident happens to you, then you may not qualify for insurance when you need it.
According to the National Institutes of Health, individuals who contracted COVID-19 faced a 100% increased risk of experiencing a major heart attack, stroke, or cardiac death for up to three years post-infection. This staggering spike in long-term risk contributed to over 228,000 excess cardiovascular deaths between 2020 and 2022, effectively erasing a decade of progress in American heart health. If you had a heart issue, there is a likelihood that you wouldn’t be able to get life insurance.
In addition, conditions like diabetes, weight and other factors could exclude you from coverage or make it very expensive just when you need it most. This is why it’s so important to plan ahead and consider what you will need in the future, not just what would be needed if you passed away today.
Will Your Needs Change?
For young families starting out, you might think about the amount of insurance you would need today, but what will you need in a decade? Would your coverage still be adequate to protect your family and allow them to live their future lifestyle when you are making more than you are now? For example, if you and your spouse were making $50,000 each when you first got married, how likely would it be that you are making $100,000 each in 10 years? This might warrant getting twice as much insurance as you initially thought.
What’s Changed?
We live in a different world than our parents and grandparents, but one thing they did was get life insurance for their children when they were born. Why did that change? Possibly due to a decrease in infant mortality, but there is a good reason to get life insurance for your children. None of us want to think about our sweet babies passing away and similarly we might think it awful to consider receiving a check if our child died. But that doesn’t have to be the reason to get life insurance for your child. Guaranteed insurability is one of the best reasons.
The Value of Insurance for Children
Back in 2019, one of my neighbors came to me and asked if I could help her get life insurance for her 7-year-old son. It turns out he was diagnosed with Type 1 diabetes, and she was concerned that he wasn’t insurable. I reached out to a number of insurance companies and got mostly the same story: if he has it well controlled into adulthood, it’s possible he can get insurance, but he will pay way more than others will. If it isn’t well controlled, he will be uninsurable. Imagine 20 years later he is a father and wants to protect his family—will he be able to?
I got whole life insurance for my children when they were in their single digits and it was very inexpensive. It guarantees that they will have life insurance no matter what their health will be in the future. In fact, the particular policies I purchased for them allow them to add additional coverage later on based on standard health ratings even if they are not as healthy. This means I don’t have to worry about my children being able to provide protection for their future family.
Final Thoughts
Approximately 51% of American adults own a life insurance policy, according to long-term industry tracking by LIMRA. Of the 49% that do not have life insurance, about 61% admit they need it but haven’t purchased it yet. Then there are those who have life insurance, but don’t have enough. This is your call to get life insurance now.
Perceived cost is one of the most common reasons people cite for not having insurance. They often overestimate the cost of life insurance. The cost of not having the life insurance you need is much greater.
If you want to make sure your family is protected, reach out. I’m happy to help.
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Disclaimer: This article is for informational purposes only and is not tax, legal or financial advice. Everyone’s situation is different, so consult a financial advisor. If you would like to connect with me, please call 615-619-6919 or email smoran@redbarnfinancial.com. Learn more at redbarnfinancial.com.
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Photo, top, courtesy of Lela / Pexels
