Life insurance doesn’t matter, until it matters. Then it matters a lot.

Few people see the real need for life insurance. A friend of mine had a conversation with someone yesterday. The topic of life insurance came up. And this person said, “People are still buying life insurance?”

Huh? What kind of question is that? Is life insurance something that people “used” to buy? Has it gone out of fashion? Is it so, “last year?”

I didn’t think that life insurance was a trend. Did people stop dying? I didn’t see that memo.

All joking aside, the fact that someone said this just goes to show how little the general public values, or doesn’t see the value in life insurance.

As I’ve noted in my book, (get it here,) there may be certain situations where life insurance isn’t needed. Not many, but there are a few.

However, there are many more reasons to get it. And time and time again I have seen disasters happen because people didn’t have insurance.

Recently, people I know had this happen to them. The father passed away without life insurance. (He actually had it, but let it lapse 6 months ago. Obviously, he didn’t see the value in it either!)

Now their affairs are in shambles. There is a lot of money owing to credit cards, a mortgage on the house, other debts, etc. And they even had to borrow money for the funeral. There may be liens against the house as well. And the sad part is, all of the responsibility has fallen on the son as the mother is not well. This plus the fact that the son has a young family of his own to take care of. Very unfortunate.

All of this could have been avoided with life insurance.

Now it’s not to say, and some of you will be thinking this I’m sure, but the “lack of life insurance” didn’t cause the debt, liens, mortgage and money owing! Right?

Right. That was just poor financial planning!

Well, did they have a financial planner? No. So who’s responsibility was it to manage the finances? The husband! Did he learn how to manage his money in school? Did his bank teach him? Friends? Where did he learn?

Wherever he learned how to manage their finances, I’m sure he didn’t learn the proper way. How do I know that? Well the facts speak for themselves don’t they? (Leaving a financial mess.)

In fact life insurance is more important than financial planning, because it guarantees financial planning. What do I mean by that? Well, if you are not there, or you pass away suddenly, your “plan” changes. If you think you will have the money to retire in the future, but there is no future for you, what happens to your plan and the plan for your family? It enters uncertain waters.

Don’t get me wrong. Financial planning is good. But only as good at the financial planner. If you are doing it for yourself, how good are you? People say, “Oh, I know how to do that.” Ya? Well, I know people that know how to fly a plane from playing a game online. But I wouldn’t get into a plane with them flying it? They are not a “real” pilot. The same way you are not a “real” financial advisor.

The main point here is, when you step “out” life insurance steps in.

“Life insurance delivers the exact amount of tax-free cash at exactly the right time – when you need it most but have it least.” No other “investment” can deliver the money your family needs exactly when they need it – when you are gone.

And remember this, Yes, people are still buying life insurance because people are still “stepping out!”

So, it does matter!

Have a terrific day.