It’s Life Insurance Awareness Month.
While that may not sound quite as exciting as National Dog Day or National Ice Cream Month (which is July in case you care), it’s an important part of anyone’s business and personal planning.
Clearly, our own mortality has been awakened over the past year and a half because of COVID-19. In my own state, there is an average of 40 deaths per day, which is an increase of 53%. That means countless families are losing loved ones, and employers are losing employees.
But as we know, there are many ways to die in addition, including but not limited to auto accidents, disease, workplace and home accidents, and just our own human frailty and internal malfunctions. This year, one of my client’s died in a workplace accident while falling off a ladder.
While I try to use these Monday morning missive to be uplifting, I’d be remiss if I didn’t make a few comments about the importance of having proper life insurance this month.
I don’t think in the history of the world, any person who has lost a loved one and now facing financial hardship ever looked at a life benefit offered by an insurance company and said, “No, we don’t need that much. We’re good.”
In many cases, even if there is life insurance in place, it’s normally woefully inadequate.
Regardless of the emotional trauma of losing a family member, if that person was contributing financially to the family budget, the increased likelihood of financial ruin is real. After the shock of loss starts to wane, the reality that the income that was being provided would stop, sets in. Having adequate life insurance to safeguard the lifestyle of those left behind is not only prudent, but imperative.
From a business perspective, employers can lose important members of the team. I’ve seen too many instances where a key individual suddenly dies and once the shock is over, it becomes clear that the organization now has to somehow replace what that person did. It might mean hiring someone from the outside, contracting with a specialist, or training people from within.
If it’s an owner, there may be money now owed to family members who expect their share of the company. And the financial burden of replacing a CEO is often overlooked when it’s not an immediate concern.
Bottom line: while life insurance may not be the sexiest topic, it becomes incredibly valuable to those who find themselves in need of money.
There are many ways to purchase life insurance, and that’s not the point. The message is that you will never be younger or healthier than you are today. Make sure that you have the right amount of insurance to adequately protect your loved ones and business if something happens to you.
It may ultimately be one if the most important legacies you can leave.
Quote of the Week:
“A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.”
~ Süze Orman
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