You know, we are not immortal. Many of us may think we are, but in the end, we are not.
That is why, if we are smart, or for us that are in the life insurance business, we are smart enough to help our clients with their planning by explaining to them the difference between “If I Die” and “When I Die”, because there is a difference. By the way, this is not my idea, I heard Joe Ross, ChFC, CLU, CRC, VP Sales Productivity & Business Development with AIG speak at a recent meeting. It just really got me thinking because so many of us think about “If” we die and not “When” we die. It should all be about when we die. Some of us will die earlier in life and some of us later.
That being said, the “When” is often turned into an “If”. If I die too soon will my family be taken care of? If I die too soon, how will the mortgage get paid? If I die too soon, will my kids be able to afford college? These are all legitimate questions no doubt, and it is smart to be prepared for the “ifs” particularly in the pre-retirement years. But now let’s talk about “when” you die.
When we die. It is a tough subject but so important to think and talk about. I hear it a lot, “My kids are grown, the mortgage is paid off, why do I still need life insurance?”. There are still risks of financial loss and some great reasons to have life insurance in place in the post retirement years. We all plan to go into retirement with our spouse, do some traveling, enjoy the grandkids and have a peaceful, comfortable retirement for perhaps 20 years. Here are some reasons why that may not be the case:
- When one spouse dies earlier in retirement and the other lives to a ripe old age of 95 or 100, which is happening more and more often, will there be enough income to sustain the one that is left living longer than expected?
- Health care costs can eat into retirement income like crazy! The lifetime probability of becoming disabled in at least two activities of daily living or of being cognitively impaired is 68% for people age 65 and older. [ AARP. Beyond 50.2003: A Report to the Nation on Independent Living and Disability, 2003, (11 Jan 2005).] Most Americans do not have long term care insurance to help pay for this, so retirement income will be eaten away in health care costs.
- Even if you do have a nice nest egg put away, what about the financial risks? Interest rates, inflation, cost of living could all leave financial hardship.
- Then there is my story. Being blessed with parents who have both lived into their 90’s but they are outliving their retirement savings and I have been supplementing their income for several years. I am happy to do it but, that is money I could and should be saving for my own retirement.
All of these issues could be resolved by having life insurance in place for ‘’When” you die. Which means not renting term insurance but owning permanent insurance that will be with you the rest of your life and take care of your loved ones “when” you die!
Consider making permanent life insurance part of the plan going forward for you and your clients. There are many types available to make permanent planning affordable. Give me a call if you want to talk.