4 Things you may not know about Life Insurance

 

family

I can’t believe it’s almost April!  It’s been a while since I wrote a blog. My main purpose today is reaching out to everyone and ensuring that you and your family are okay and also ensure that your friends and family are okay as well.  What does that mean?  It means that many people say they don’t know anyone who either may need coverage or also have a professional look at their current life insurance policies (No obligation of course). If you are in the right vehicle, I will be very honest with you.  The only thing I have to gain is that you gave me the opportunity to meet and I can sleep knowing my clients are taken care of.

But my real question is, if you were having a birthday party for your children, who would you invite?  And are those people not considered your close friends and family?  I can honestly tell you that being a Life Insurance Representative is not the easiest job, but it is absolutely the most rewarding because I get to help families be protected and also help to avoid double devastation: 1) for the loss of of the loved one and 2) Helping to avoid financial devastation to the living spouse/children and family.

Listen as a  Life Insurance agent, I receive training on a weekly basis to ensure that I provide my clients with the best, updated and accurate information.  Sometimes we don’t know what we don’t know, however I would really like to hear from you if only to have a conversation. I’ve had people avoid me, walk away from me and even say the topic is depressing, and yes I totally understand, even thinking they cannot afford it.  But I am hear to tell you that you can’t afford NOT to have it.

But let me move on from that topic and jump into something I’ve heard people say over the past year.  What I am providing you are actual facts,  please let me help you understand a few misconceptions about life insurance:

(1) I don’t need a pre-need (insurance for burial).  My life insurance will cover ALL the costs.

Life Insurance may cover your Mortuary cost, but definitely not your burial cost.  Depending on the mortuary, they may consider taking the cost out of the face value and your family will receive the remaining benefits. I would strongly suggest checking around first and not leave your family the burden of having to deal with this issue.  You can just call on the phone to find out if necessary.

(2My policy is worth $50,000.00 (whole life) and I’ve had it for over  30 years, my family will be okay.

If you are taking out loans on your whole life policy and not paying it back, or if you are not able to make monthly payments on your premium and the insurance says “it’s okay”, then please know that the insurance company WILL deduct any due amounts out of the FACE Value of the policy.  An example of this issue is a Husband who had 18 policies, only to learn upon death ALL of the policies combined were only worth $2,500.00 total, not enough to cover his burial expense.

(3) My Mom has a life insurance policy on me…I don’t  need coverage

Understand that once a child turns age 26, they are no longer covered under the parent’s life insurance policy.  It is the parent’s responsibility to call the insurance company to let them know that a new policy must be purchased in order to continue coverage.  Some Life Insurance companies still bill the parents even though the coverage has expired!  This is the type of information that many people may not know or  understand and this is just the tip of the iceberg!
(4) I have a policy at my job…I’m good!

What you actually have at work is called a “Certificate of Insurance” and not a life insurance policy.  Depending on where you work, the policy may not pay out to your family. For example:  At some companies, you have to die on the premises to receive the death benefits, other companies, you have to work a certain amount of hours.  Lastly, the companies rarely, if at all give employees a copy of Certificate to review the fine print.  I am not saying to cancel your work policy, you should absolutely keep it, but everyone should have a separate policy outside of the work insurance policy.

I thank you so much for taking the time to read this article. Although it is not a popular topic, it is absolutely a necessary one.  If you have questions, please do not hesitate to call me at (213) 923-1084. I would like to here from you.

Until the next time!

Maxine Sinclair