AAA Survey – A Case Study and Conclusion: Do I Need Life Insurance

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On 9/29/17, WOOD-TV 8 (NBC Television in Grand Rapids, MI) ran this report relating to some common life insurance facts and several of the misconceptions of consumers.  As a company, we have heard a lot of the myths and misinformation highlighted in this report.

However… The point of bringing this news story to your attention today is for one surprising fact this study revealed.  In fact, it just plain shook me up.

And…here is the shocker….

In the news report, a new survey conducted by AAA (Triple A) in the State of Michigan found that approximately 1/3 of the state’s residents did not by choice, have life insurance.  For one reason or another, they do not believe they need life insurance.


In Michigan, that is nearly 3.3 million people!! Now, I think it is fair to say that this is the case nationwide and not just 1/3 of Michigan residents.

Imagine roughly 33% of people across the country not having life insurance. How many of those families would be financially wiped out because life insurance was never purchased in the first place.

Are there that many affluent people across the country?  Are most families debt free and capable of handling the loss of a key member?

Leaving this world costs big money.  Sometimes it is enough to financially wipe out surviving family members who are already grieving in their loss.

Most of us know someone who lost their life unexpectedly either young, middle aged or a perfectly healthy retiree looking forward to his or her “golden years.”

After reading this article, I hope you may conclude…”hey, I need life insurance.”

Do I Need Life Insurance

The concept of little to no life insurance has grown into a mentality and a way of life for many around the country apparently.  Why is this?  Maybe some believe they are saving money? Fact is, people are in increasingly worse financial shape than previous generations, yet feel they do not need life insurance?

Many people falsely believe that life insurance must be expensive or that the unthinkable will not happen in their lives.

Seems clear that this “mentality” has not escaped the view and subtle criticism of the television news media either.

What was also pointed out in this AAA report, is that most people actually do need life insurance.  In my experience, too many folks spend their time trying to decide why they don’t need it.  You don’t buy life insurance because you will definitely need it, you buy it in case your loved ones need it.  It is financial protection for the loss of the insured individuals life.  In other words, it is insurance for the living.  Remember, the changes that unfold around a family member leaving this world can be devastating.

If you have loved ones around you that depend upon you or have any unpaid debts, you absolutely are in need of life insurance.

If you are a young whippersnapper, the survival odds are more in your favor statistically so coverage costs are so low and very few cannot easily afford the protection.

With that said, who will be one of the “unthinkable” statistics?  None of us have a crystal ball do we?  Car wrecks happen all the time and they don’t care how old you are, do they?

The younger and healthier you are, the less expensive life insurance tends to be all other things being equal.  No better time then the present to lock in a low, guaranteed premium.

At one point, I was a “young whippersnapper” myself.  I have had life insurance policies for years to protect my family from the “what ifs.”

If I played the odds, then I did not make a good decision.  However, my family depends on protection from the what ifs.  Without it, if I were to pass on, my kids lives are effected beyond emotions.  How would my plans for them and their dreams come together.  The funding needs to be there, right?  I am going to assume that I will be around till my 70’s, but I am going to sleep well at night knowing my family will be ok financially if become a statistic.

So, life insurance to the rescue.

I transferred risk of loss of my income and service to the life insurance company best for my individual needs.  I sleep much better knowing that everything will be okay for my family if I become a statistic.

If you’re single, a family member is going to have to take care of your financial affairs.  Do you have the money set aside to cover everything?  College loans, mortgage, rent, credit cards etc?

There has never been a time more affordable or an easier method to buy life insurance. 

Basic term life insurance can be darn “cheap” for the very healthy assuming good driving record and no “risky” hobbies or careers.  Technology and the internet has put you in the drivers seat so you have full access to all the top life insurance products and their costs.

Life insurance coverage can be purchased online and over the phone.  This is all provided you contact/access a licensed, independent life insurance professional with the appropriate technology that will work with you all the way thru the process.

As a consumer, the power is now in your hands in the relaxation of your own home.  There is no real pressure to buy anything.  You purchase coverage when you are satisfied and ready.   If you don’t like whom your speaking with, contact another independent agent/broker.

A good independent agent is there to help you obtain affordable coverage by advising you based on your needs and wants.  They give to you access to numerous companies that are competing for your business.  Listen carefully to them.  Let them know the reason you may need life insurance.

Are they asking you questions or just telling you what you need even before questioning and evaluating your goals?   If you sense this, look elsewhere.  If they are highlighting how they only sell term life insurance because whole life insurance is a rip off, be leary.  On the other hand, if whole life is their only product so to speak, I would recommend looking another direction as well.  These are close minded agents with a one size fits all mentality.

In both cases, neither representative agent is accessing your needs first to see what you want.  As a professional, they should be open minded and have companies and products to fill the need.  Too many opinions with little understanding of how and why certain products are on the market.  You will never hear that at Special Risk Life or any other reputable independent agent/agency.  Putting a round peg in a square hole is not a good recommendation to a life insurance consumer.

Instant Life Insurance Quotes are readily available from professional independent life insurance agencies 24 hrs. a day.

Most of the cases of “expensive” life insurance revolves around large whole life insurance policies or highly “rated up” impaired risk coverage.  Term Life Insurance is very inexpensive and offers the most affordable premiums available if your coverage needs dictate it.   An independent life insurance agent/agency like Special Risk Life can help you determine what your life insurance needs are and which insurance companies are going to give you the most affordable offers.

Life Insurance has always been part of sound financial planning throughout history.

So why are “1/3” of consumers not following suit?  Older generations, particularly the G.I. Generation or the Baby Boomers have had less financial debt than younger generations.  At the same time,  these older generations have a solid history of carrying life insurance to protect their families.

If you still need to take action to insure your financial integrity, we hope you will take that step today whether is with us at Special Risk Life or another reputable independent agent or broker.

Our company has been insuring people like you whether you are entering college or a senior citizen.  We’ve done this for years, simply and affordably.

Most Seniors do not want to place a burden on their family and/or want to leave an legacy behind for their loved one’s.  They want affordable coverage to take care of everything when they are gone.  That is exactly what a good professional will help them obtain.  Insurers have products designed specifically for Senior’s, not just the young whippersnappers like we all once were.   That is where your standout, independent agency really shines above the rest.  They have access to the full life insurance industry and can shop it for you.

Today’s “Millennial” and “Y” generations in particular have racked up huge amounts of personal debt.  Whether that be their mortgage, their home, automobiles, credit cards or even college loans, these generations have struggled with overall income and cost of living increases that has resulted in considerably higher debt than previous generations.  It almost begs the question, “how can I afford to not have enough life insurance?”

If you are in this group and asking yourself the question “do I need life insurance” I think you just found your answer.  Those large debts just don’t go away.  They land in the lap of the family.  Does your family deserve to be strapped in your debt?

Remember, families are grieving in those terrible times but also dealing with the financial crater a death can leave behind.  What do they do?  Where does the money come from?  What would those around you do without the protection life insurance offers?  Life insurance is not something that is an extra in your budget, it is like auto or homeowners insurance.  Leaving behind a mountain of debt unexpectedly is not a legacy most of us would chose to leave behind.

You don’t have to.  Life Insurance is absolutely very affordable.

If you have not already acted and contacted a good independent agent, ask yourself what happens if life takes a turn and your life is lost? Whether it be Special Risk Life or another seasoned independent agent/broker, due yourself a favor and get it done!!  Make contact.  Life does not pick favorites and just isn’t fair sometimes.  Protect your loved ones.  Cut back a bit on eating out and/or Starbucks and you will be able to afford life insurance in no time.  Think you will agree, our loved ones are just more important.

Remember, we can’t fix our problems if the unthinkable occurs.

We have to manage our personal affairs while we can. Peace of mind and absolute financial protection for your family and/or business can and do come together.  Most individuals we work with are pleasantly surprised at how affordable life insurance really is, particularly when figured in on a daily basis.  Doesn’t matter whether you are a college age student or a senior citizen.  Without a doubt, the average person simply does need life insurance.

Whether you realize it or not, your life has inherent value whether you are working in a career, a stay at home parent, retired or anywhere in between.  As an adult, we all know that financial responsibility is something we must have so as to not to burden our families if or when the unthinkable happens.

Life insurance will never replace you…

but your wishes as the policyholder will leave the legacy of your love and/or commitment behind to whom you intend. Life Insurance also fulfills your responsibility after the unthinkable occurs for unsatisfied debts.  Make sure you have adequate life insurance for your family or business.  Find a good, seasoned, independent agent who can help you assess your financial needs.

If you are not sure about the kind of life insurance you might need, you might consider checking out this article.

We hope that this post has cleared up any reservations you might have.  Do I Need Life Insurance is an important question to have an answer to.  If you have read thru this article, you should be able to look at your own situation and decide how you want to proceed.  If you have any additional question don’t hesitate to give us a call.

At Special Risk Life, as a fully independent agency, we have the ability to make affordable life insurance a reality for you.  We know how to shop your situation even if you are a “special,” high risk life insurance candidate or a young and healthy “whippersnapper.”   We are the solution to your life insurance needs.  Difficult cases just happen to be a norm here.  It is part of what we do here.  If we don’t have the answer to your question(s), we will obtain it for you.  Remember, we are here to help you.  If we can’t help you, we certainly are not going to hurt you.  That is our commitment.  Give us a call at 269-230-3464 if we can be of assistance.

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