Life insurance, it’s better to have it and not need it than to not have it and need it. As trite as that adage may be and how it reeks of a cliché that has been bequeathed from grandparents to parents and now to the coming generation you would think that we would understand not only the importance, but how it works… Looking at it from the aspect of all insurance that we have incorporated with various assets, for example if you have car insurance and you get into a car accident that wrecks your vehicle you either get a new car or the original car gets fixed because you have that insurance that covers that particular asset.. Another example is homeowners insurance, if your home is set on fire and is damaged or destroyed from the accident the associated insurance you have puts you in the position where the damage that was applied is repaired or you get a new home… So with those two examples so far it seems that insurance is needed to protect assets that we utilize on a day to day basis just in case some unforeseen accident happens on a catastrophic level that we ourselves are not able to repair. With that being said then what is the most valuable asset that we have right now? It’s our lives because with our lives we’re able to use our time to accumulate wealth and assets that we’re able to use for ourselves and also pass down to the next generation.
So if our lives are the most important asset that we have then there must be something that protects that asset. This is where life insurance comes in, but first it needs to be clarified that life insurance does not protect your life… If something were to happen to you right now and it causes you to lose your life, your life insurance policy that you have right now does not open the gates of heaven and reverses time to where you’re given a second chance to miraculously avoid the accident that caused your mortal demise. You see life insurance has the wrong name because it does not protect your life but your income. This is very pertinent because if you look at the price ranges involving the cost of your death the subsequent fees are as follows, Professional service fee: $2,000, Transfer of remains $300, Embalming and body preparation: $695+$250, Funeral viewing and ceremony: $400+$495, Metal Casket: $2,000-$3,000, Funeral transportation: $300, other expenses include flowers, newspaper obituary, clergy honorarium, extra copies of death certificates, vault or grave, opening and closing of grave, all those expenses adding up to anywhere in between $7,000-$11,000. Now all those fees added with the staggering statistic that 78% of Americans live paycheck to paycheck, which means that on a scale where we measure the majority of the inhabitants in this country more than half are not able to provide the funds for their own death and/or a death in the family. So that’s why it is so paramount to have life insurance, because on the trek of life as previously stated our time is devoted to the accumulation of wealth and assets so we’re able to live life comfortably. Anything that has an abrupt interruption in that plan where we leave loved ones behind, we simply cannot ask them to bear the burden emotionally and financially.