Does Everyone Really Need Life Insurance?


Confused 1There are few things that are as distasteful to me as cleaning up someone else’s business mess.  I figure that it is my responsibility to solve any problems that I cause.  That is why I try not to make mistakes the first time.  My clients trust me to know what I am doing.

As a human being, I know that I can make a mistake.  When that happens, I have learned to be honest with my clients and let them know ASAP that I made a mistake but will correct it.  Fortunately, as I have gained experience, mistakes are not as common as they used to be.

My wife is also a business owner.  Her business has nothing to do with mine.  She runs a bookkeeping service.  Her company only has one customer but he is the owner of several energy businesses and continues to buy up others.

Yesterday, she had to spend 3 hours sitting in a meeting to impart information that could have been imparted in 15 minutes.  (Meetings are another reason I do not miss the general agent system.)  When she returned she still had to get her work done.  One of those tasks was to correct a problem that was caused by an executive in one of the companies that she works for.  It took her over 2 hours to get things corrected.  (If she had been able to work at her job rather than waste time in a meeting during regular work hours, she would have been able to make the correction in less than 20 minutes.)

In the past 25 years as an insurance agent I have learned that a great deal of the problems that arise can be prevented.  (Meetings are not generally needed.)

DO THEY?

One of the problems that I have to deal with in my industry is agents who tell people, “everybody needs Life insurance.”

As a rookie insurance agent back in the 1980s I was taught that everybody needed Life insurance.  It never dawned on me that the people who were teaching me were biased.  Other than someone who stands to make money by the sale of Life insurance, I have never read, “Everyone needs Life insurance.”

The idea of Life insurance did not become popular in America until World War I.  It saddens me that every American that died in the 19th century did not have the ability to get something that is necessary.

Life insurance solves many financial problems when someone dies but it is not essential.  The vast majority of humans in history have died without Life insurance but the world continues to spin and the human species has not become extinct.

I do remember one jewel of wisdom that I was given during my early years.  It was not something I learned in a classroom or text-book.  It was from a man who had 26 years experience working with Life insurance.  He told me, “Let the problem that causes the problem solve the problem.”

In other words, Life insurance is a nice luxury for survivors to have if you will leave debts for others to pay when you die.  There are plenty of justifications for buying Life insurance.  There is also merit to the argument that Life insurance is not necessary for everyone.

Next week’s email is about the different uses for Life insurance.  Click the banner below to subscribe to get our email automatically.

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