Posted by Paul F. Lynch
Nearly every homeowner you know probably has some form of homeowner’s insurance to help replace their home if an act of nature, arson, or accident ruins the structure. The same is probably true of most car owners. Many states require drivers to carry automobile insurance, and lenders require it.
These kinds of insurance policies are important, but they may ultimately prove unnecessary. Your home or car may be ruined or damaged someday as a result of an accident or act of nature. It’s also possible that you’ll pay for automobile insurance and homeowners insurance for decades and never have a need for it.
That’s not the case with life insurance. No matter what happens over the course of your life, you will inevitably experience the “insurable event” that triggers payment from a life insurance policy. It’s simply a question of when.
While you may outlive a term insurance policy, many term policyholders in many instances, convert their term policy to a whole life policy before the end of the term. (Check with your agent or insurer to find out if your policy is convertible.) Converting a term policy allows you to realize the benefit of low-cost coverage for the length of the term as well as having a whole life policy with a guaranteed death benefit and a cash value from which you can borrow throughout the course of your life. Bottom line: you’ll always have a need for life insurance.
It’s important to hedge your financial risk for loss. After all, no one wants to have to pay out of pocket for damage repair in the event of a house fire, for example. But it’s just as important to plan for the events that you know will happen—even if you don’t know exactly when—so your family isn’t left without the resources they need to continue living the lifestyle you’ve worked so hard to provide.
To learn more about protecting your family with life insurance, call SBLI at 1-800-438-7254.