I meet people every day that do not have Life Insurance. The first question I ask them is, what is your DOD?
They look at me puzzled, probably like you are looking at the screen right now. I then say to them, you know your DOB, this is your Date Of Birth, right? So what is your DOD? Nobody can guess that because that is your Date Of Death.
If there was a way that we could know that then Life Insurance would be easy. You could just wait until the day before you DOD and call me and say, "Roderick I want that Life Insurance now".
That Will Not Work Either
Most companies take a person through under writing, sometimes policies don't get issued for 3-21 business days.
The Longer You Wait The More It Cost.
Because the longer we live, naturally, the closer we are to death. Due to this fact, Life Insurance Companies have to charge more money to older clients.
Children Should Have Policies Also.
One of the best things you can do for you children is purchase them a cash value/whole life policy when they are young. The value never changes and the premium, (money you pay the company) stays the same for the rest of their life; or in most cases until they reach age 100.
How Much Should You Purchase?
If you do not have any Life Insurance, make sure the first policy covers your final expenses. This is usually for a funeral.
I recommend a $10,000-$20,000 policy for final expenses.
Second, Third Or Fourth Policies!!!
If you have debt, own a home or have children under college age; I would recommend a term policy in addition to the whole life/cash value policy.
Term is less expensive than Whole Life/Cash Value, however I would not recommend having a term policy only.
There are many theories out as to how much you should calculate your insurance need. I usually recommend to multiply your annual income times 10 or 15. This will give your family 10 to 15 years of your income even though you are not around.
If you can't afford everything that you need, get what you can afford then purchase more at a later date. It is better to have some of what you need, rather than having none of what you need.
Remember, a widow never said her husband left me too much money. They usually say the opposite.
Make sure you speak with a Licensed Consultant before you purchase Life Insurance.
CAUTION: PLEASE, PLEASE, PLEASE, DO NOT THIS THE CHEAPEST POLICY IS THE BEST POLICY.
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