5 Reasons to Use a Broker for Life and Health Insurance

A forty-six year old woman lost her life to breast cancer. A six year old boy died in a car accident. A thirty-five year old man suffered a sudden heart attack. Men and women, moms and dads, kids, grandparents—death doesn’t discriminate; it doesn’t care about age, gender, occupation, or religion. Social media reminds us on an almost daily basis of this fleeting nature of our existence. I see tragedy striking again and again and it seems each heartbreaking notification is accompanied by a GoFundMe page. I appreciate the ability to direct my grief into a useful outlet and I know others feel the same. My hope is that those funds provide some financial comfort in such a devastating time, that the recipients can utilize the funds for a memorial, a family trip, or any resource that helps the family cope with the loss. My hope is that those funds are not needed for funeral costs, medical bills, or daily living expenses. Unfortunately, the shock of death is often compounded by the shock of bills that start adding up. Funerals cost thousands of dollars, and that doesn’t even include the burial plot, a grave marker, or flowers. No one likes to think about or talk about death, but this inevitable truth for us all can cause even more pain if we don’t prepare financially. In addition, many do not understand how easy and affordable life insurance is to obtain. Here are seven myths about life insurance. Myth #1: I’m single so I don’t need life insurance. If you don’t have a partner depending on your income, you may not think you need life insurance. However, you may not always be single and premiums will increase with age. There are also funeral expenses to consider. Legally it is the next of kin who are required to cover funeral costs. Imagine the discussion between a group of family members, each with varying occupations and annual salaries, who are asked to pay equal portions of a funeral. Now this family is battling the resulting financial stress instead of supporting each other in their grief. A life insurance policy can eliminate this potential for your family. Myth #2: I’m sure my spouse took care of that. It seems that the responsibilities of insurance and other financial obligations typically fall to one person in a relationship. However, it is extremely important to discuss these issues and ensure everyone is on the same page. A friend recently relayed that her mail carrier lost her husband to a sudden heart attack at fifty-three. Not only did he not have life insurance, she discovered he had not paid taxes on their home business for the past 6 years. Suddenly she is faced with funeral costs, medical bills, a home in foreclosure, and 50K in back taxes. While this is an extreme circumstance, decisions about finances, including insurance policies, should be thoroughly discussed and made together. Myth #3: I’m covered through work. Even if you have a life insurance policy through your employer, you may not be fully covered. Most company life insurance policies can only be claimed for the amount of an employee’s annual salary. Some companies may allow an increase in that amount, but these policies are not guaranteed. If the employee leaves the company, they risk losing the policy and facing higher premiums when purchasing a new policy. In addition, some may find themselves uninsurable due to new medical conditions. Sears recently laid off thousands of employees and did not permit them to buy out their life insurance policies. Purchasing your own policy will protect you from these risks. Myth #4: I don’t have time to research my options. Insurance brokers have already done this leg work for you and their expertise is available at no cost to you! They will provide you with options and take the time to explain these options in detail so you can make an informed decision. There is no commitment required for this information so you have nothing to lose! Myth #5: The process is too complicated. You can obtain life insurance in just two to three steps. First, you will need to submit an application, which can be completed over the phone with your broker. Next, you’ll need a health exam where they’ll collect blood and urine samples. (At times, the health exam is not required if the applicant is healthy and has little to no medical history.) Finally, submit the payment for your premium and you’re all set! Myth #6: I can’t afford it. This statement is made often, but it seems a reflection of priority rather than truth. While I would never encourage someone to purchase something they truly could not afford, many people are surprised by how easily they’re able to manage the cost. Affording life insurance can be as easy as skipping a few coffee runs each month or resisting that impulse buy. We insure our homes, cars, even our phones, so why wouldn’t we insure our lives? Myth #7: I can wait for a better time. When we are young, we tend to think of ourselves as invincible. Illness, death, funeral expenses, life insurance—those are concerns for “old people." But the truth is, there will never be a better time to purchase life insurance. The younger you are when purchasing a life insurance policy, the less you will pay in premium costs. In addition, a future illness may prevent you from getting life insurance at all. Take the guesswork out of your future and protect yourself today.