What am I buying when I get life insurance?

Buying life insurance is the most important financial decision you will make.  Unless you are independently wealthy if you don't have it you are rolling the dice.  But not on yourself, rather it's anyone who depends on you.  It could be your kids, your wife or husband or even elderly parents.  The question is; if you weren't around what would happen to them?

 When you buy life insurance you are getting a lump sum payout to take care of a laundry list of expenses.  There are the big ones like your mortgage, smaller ones like your car or cars, and even smaller ones like cable and utility bills every month.  There are also future expenses like college or private school for your kids or even setting aside some money for your retirement down the road.  

One of the best ways to  demonstrate the need for life insurance is to tally your expenses for the month. The interesting thing is usually it's more than you think.  If you think it's $2500 a month, I'll bet you it's really closer to $3500.  Think of gas for your car, groceries, eating out, movies...all those things add up as well.  Then imagine if you had no money coming into your account. How long could you last?  If you are like most Americans, it might be a few months, but not very long. 

Life insurance is a very inexpensive way to protect yourself against this.  Chances are you won't die, but statistically some people do.  And some of those folks have taken the step of buying life insurance.  Their families then have lost a loved one, but have resources to tide them over, to pay the bills, to pay for college.  Those who don't wind up selling their house, cars, getting a second or third job and struggling to make ends meet.  All for the sake of maybe $50 or $100 bucks a month.  

It's a shame really, something that costs so little can have such a dramatic impact on generations of a family.  Penny-wise and pound foolish is an old expression and one that fits the bill here.   Remember life insurance isn't about you.  It's about the ones you care the most about.  We can help find a plan that is specifically designed for your needs.