Life Insurance: Can You Live Without It?

By Diane Sague Ehnes

It’s technically life insurance awareness month, so I feel it’s my duty to touch upon this topic. I know, it’s not so fun to think about the possibilities of an untimely death – but it’s such an important piece of your financial health. And I also know that many of you just abhor insurance of any kind. Believe me, I understand. But amuse me, and let’s explore the topic a bit…

Would you consider going without health insurance? How about car insurance? Your house? Your cell phone? Now, let’s dive in…. what if the “What if?” happened to you? What if your spouse passed away? Could you pay your mortgage, your monthly bills, childcare, college for the kids, a year or so of missed work for grieving? How important are all of these things to you? What would you want for your family if you passed away unexpectedly?

The purpose of life insurance:
Life insurance acts as a substitute for the income that would have been there had you or your loved one not passed away. It helps pay the bills and childcare and time off for grieving and all the other things you may not want to think about. I urge you to get a little uncomfortable right now and think about it. It really is important to consider. You work hard for your money, your house, your car, your savings, and all the other things that are important to you.

Life insurance is part of your overall financial health, a comprehensive approach that looks at all aspects of your life… not just investing for retirement. That’s why I’m concerned about this. I believe in holistic, not piece-meal. I know what it feels like to have no protection, no investment plan, no way of knowing if I will reach my desired (or required) goals. And I also know what it feels like when all of those things are mapped out and put into action – and my assets and family are protected. It feels good.

Insurability:
You’re more favorably insurable when you are healthy and younger. And your insurance premiums are lower. The longer you wait, the older you get and the more likely you are to have a health issue that could cause your rates to go up. Not to scare you, but only to make you think… I had a 32 year-old neighbor pass away because of a blood-clot… a 35 year-old get breast cancer… a 40 year-old had heart problems. This definitely affects insurability.

If you’re interested in looking into life insurance, contact a reputable insurance broker or a financial advisor. It’s best if this person knows your overall financial picture so that they can give you an accurate personalized proposal depending on what is the right amount of coverage for you. There are many types and combinations of life insurance. Don’t be shy to shop around – just make sure your quotes are based on the same factors.

Diane Sague Ehnes is a Financial Advisor with Waddell & Reed. She lives in Southeast Portland with her husband and two young sons. Diane can be reached at dsehnes@wradvisors.com or 503-238-6036 x203. Waddell & Reed, Member SIPC.

The opinions expressed are those of Diane Sague Ehnes and are meant to be general in nature and should not be construed as investment or financial advice related to your personal situation. Please consult your financial advisor prior to making financial decisions.