by Michelle Oliver
“But I have life insurance through my job!” These are the words that are often said when I discuss financial needs with individuals. I usually respond by saying, “And it is two or three times your salary, right?”
Let’s look at an example. Suppose someone is making $30,000 a year and the company matches two times that salary in life insurance. If the person died, the benefit paid by the company would be $60,000. But let’s say the person has three kids, a spouse, a house, a car, and some credit card debt. Do you think $60,000 will send the children to college or private school? Could those left behind still live in the same house that required both incomes to afford? These are the questions I ask individuals and most of them answer no.
My goal is to make everyone aware of what can happen when there is a life-changing event. Most people don’t want to discuss it until it is too late. I can’t stress strongly enough how important it is to plan. Don’t believe the myths surrounding life insurance.
Myth #1: Life insurance costs too much. With all of the innovative products today, you can find a policy that fits into your budget.
Myth #2: Someone else will take care of it. Yes, someone has to take care of your final arrangements, but without ample life insurance, your loved ones may be in a financial bind.
Myth #4: I will get to it later. I have time! Actually, the older you are, the more expensive it is to get life insurance. Getting life insurance while you are young and healthy will get you the best rate. You can still get insurance when you are older, it will just cost a little more.
Myth #3: I have enough life insurance at work. A lot of companies have the life insurance option at work. But what if you get laid off? Some companies allow you to carry the insurance with you, but the majority of them don’t.
Take time to educate yourself on the significance of life insurance. Think of it as leaving a love letter to your family. Protecting your own life is a great way to start. Then you can tell others.
About Michelle Oliver, the “Money Guru”
Michelle Oliver has over 20 years in the financial, insurance and marketing industry. She has worked at Wachovia Bank, GE Financial and Genworth Financial. Today she runs her own firm, The Oliver Financial Group. She is licensed to sell life and health insurance and holds her Series 6 and 63 investment licenses. She is passionate about teaching financial literacy and has been quoted in print and online magazines including Black Enterprise, Essence, the Richmond Times-Dispatch and more. Michelle is married with two children and lives in Glen Allen. Contact her firstname.lastname@example.org or call 885-0811.