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Be Wise With Money
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Four Excuses That Could Harm Your Financial Future
November 19, 2015
Don’t let them get in the way of protecting your family
Do you ever wonder if you have enough life insurance? And how much is enough? Thinking – and making decisions – about life insurance can be overwhelming. So when it comes to reviewing what you’ve got – and considering what you don’t have – it’s pretty easy to come up with excuses.
But doing so can put your family’s future financial security at risk. Don’t let these common excuses keep you from what’s really a simple and quick task.
1. “I’m too busy.” Checking in with your financial professional doesn’t have to take an evening, or even an hour. “We’ll try to have a teleconference, or grab coffee for 15 or 20 minutes,” says Nathan Wangerin, a Thrivent Financial representative in Denver. That short amount of time could be all you need to stay on track.
2. “Nothing has changed.” This is the excuse Wangerin gets most often. He says that even if you haven’t experienced a milestone such as the birth of a child, your income or goals may have changed. That makes a checkup valuable.
When your income or savings increase, you may think that an advisor will tell you to buy more insurance. Maybe. But depending on your situation, the opposite also could be true. A financial professional can help you get the right amount.
3. “I don’t want to think about tragedy.” This is a natural response. “For many people, there is a resistance to discuss life insurance. This is because it sometimes causes you to have to address something horrible happening in your life,” says Al Todd III, a Thrivent Financial representative in Allison Park, Pennsylvania.
Todd understands not wanting to talk about a loved one – or yourself –dying someday. But not having the right type and amount of insurance can have a huge impact on you or your family members in the future.
4. “I have group life insurance through my job.” It’s a common belief that when you sign up through your employer, you’ve done enough. But a group contract, which might only cover two or three years of lost income, might not be enough coverage. If you have debt, such as a mortgage or student loans, the payments may last longer than the money.
If you’re paying for your group insurance, you may find those rates may be much higher than individual rates. “I would challenge healthy folks to apply for life insurance on their own to see if the rates are comparable,” says Brent Fassett, a Thrivent Financial representative in Baxter, Minnesota. Several of his clients recently found lower rates outside the workplace.
In addition, if your job situation changes, your group coverage may change as well. It could go away, or it could go up in cost since you’re no longer part of the group.
The bottom line? No more excuses. It’s time to meet with a financial professional for a quick review of your insurance.
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