Very few things bother me as much as a life insurance agent manipulating a trusting client. When the unprofessional life insurance agent says, “Everybody needs Life insurance,” I want to puke.
As an insurance professional for the past 25 years, I know better. Not everybody needs life insurance. That cliché’ is something that was thought up to motivate rookie life insurance agents. It is part of the “spiel” that sales managers use to recruit Life insurance sales people.
They know that the more gullible ones will sell Life insurance policies to their friends and family and then quit. When that happens, only the Life insurance agency wins.
The person who believed the sales manager in the first place has no job. His friends and family now are paying for Life insurance each month that they did not need in the first place. The only reason they bought the Life insurance was to help their loved one with his career.
Unfortunately, many people keep paying premiums, especially for Term Life, for weeks, months and even years after their loved one has stopped selling insurance. They either forget that they have set up that automatic bank draft for the premium or think that there is not much difference between Life insurance policies. It is not worth the time and hassle it takes to change.
In spite of the hyperbole from rookie and immature insurance agents, there are legitimate reasons why you would need Life insurance. If you own real estate and have more than one child, Life insurance could save the unity of your family after you are gone.
Real estate is not the most liquid asset. Nor is it easily divisible. If your estate includes real estate and you plan on leaving them to you heirs, you may want to consider some potential complications.
If one heir wants to keep ownership of a piece of real estate but a co-heir wants his share, the probate court may require the real estate be sold and the proceeds divided by your heirs.
If the sale occurs during a down market, all heirs will be forced to settle for less than the full value of the property. In addition, the heirs who wanted cash will get their cash but the heirs who wanted to keep the property “in the family” will be disappointed.
One way to settle this is to give your heirs plenty of cash. By having sufficient Term Life insurance, there will be enough cash (liquidity) for those heirs who want to keep ownership of property “in the family” to buy out the interests of those heirs who want cash immediately.
If you do not already have a relationship with an insurance agent whom you trust, I would like to apply for the job. Visit the ABOUT page of this blog to learn more about me.