“$3 Million to the ex-wife? OUCH!”
Would your family be taken care of if something happened to you?
This is not an easy topic to discuss or even think about. Almost 1/3 of people don’t obtain life insurance simply because they don’t like thinking about death. However, if you have family members that depend on you, it’s time to consider how you’ll take care of them if something happens to you. Life insurance is a key component for many financial plans. We often find that a) you don’t have insurance, b) you are underinsured based on your financial situation or c) you are paying too much for insurance that you don’t need.
There are plenty of reasons why you might not have life insurance. Maybe you think it’s too expensive, maybe you’re not sure how much you need, and maybe you feel too young and think you have plenty of years before you might need it. 85% of consumers agree that most people need life insurance, yet only 62% say they currently have it.
Some key things to think about regarding life insurance include:
- If you have anyone who depends on you financially – you need it
- Some life insurance is better than no life insurance
- Life Insurance is often less expensive than you think
- Your work may offer life insurance in your benefits plan
- You may be able to shop around and keep your current insurance values at a lower cost
Here’s a true and interesting story that illustrates the need for careful planning regarding life insurance (names changed). Mike was an executive at a high-profile pharmaceutical company in his early-50s and had been married to Becky for over 20 years. Mike and Becky had 3 beautiful daughters and Becky cared for them at home. Mike tragically passed away in an auto-accident on the way home from work one evening. He had a $3 million life insurance policy in case anything happened that would take care of Becky and ensure their daughters could attend college. Unfortunately, after passing away, it was discovered that the policy beneficiary was his ex-wife, whom he had both married and divorced in his early 20s. This insurance policy hadn’t been carefully reviewed as part of his financial plan and their family assumed it was in place to take care of Becky and the girls. End of story. A Financial Life Inspection®will thoroughly review all of your life insurance, assets and financial account ownership and beneficiaries to make sure they are all properly updated.
Back to the original question: Would your family be taken care of if something happened to you?
If you can’t answer this question confidently, then we should talk. Through your Financial Life Inspection®, Pacific Capital can show you what the appropriate amount of insurance is for your family and the most cost-effective way to obtain it.