29 November 2013 0 Comments

Who Really Needs Life Insurance?

taking care of the familyDo you really need life insurance?  I guess it can be argued that no one really needs life insurance.  After all, when a claim is paid on your life insurance policy, you will be dead.  Whatever your beliefs may be about a hereafter, when your death certificate is signed you no longer have a concern about future financial matters.  And there is no law requiring you to carry life insurance, so why bother?

In my previous entry I discussed the concept of human life value as expounded by the Wharton School’s Solomon Huebner.  It would suggest that the need for life insurance should be measured by the insured’s future earning potential.  But, why bother?  If you’re not around, why bother with your future lost income?

Indeed, if there is neither a legal, business or emotional justification to replace your earning potential, don’t bother with life insurance.  But, if there is anyone in your life for whom you care, or more than that—love—who would be placed in a financially compromised position if all your future income were terminated tomorrow, then you do need life insurance.  You don’t need it for you, because life insurance is not for those who die.  You need it for them—the survivors for whom you care.

If you have a spouse who would have a tough time paying the mortgage on your home; if you have kids whose college education would need to be scrapped; if your family would not be able to afford the essentials, might even need food stamps or, for that matter,  just not be able to afford the family vacations you had always envisioned for them—and—if you accept any degree of responsibility and love them, you need life insurance. 

In these instances you must embrace Solomon Huebner’s concept of human life value and realize that your human life value extends beyond just you.  If you are a young income earner in reasonably good health you will be amazed at how much of your income potential you can replace with a premium of just $1 to $2 per day.  Don’t wait for an insurance agent to call you. Most won’t be interested in such a paltry premium.  So, if you don’t know an agent who you can call, go to www.selectquote.com or call 800-596-9372 and talk to some friendly people who will be happy to assist you no matter how large or small your need.

Get off your duff and do it!

Next I’ll be covering some rules to follow when reviewing life insurance you currently own and how to integrate it with your present needs.

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