Why Buy Life Insurance?

This persuasive paper is designed to influence you to recognize your need for life insurance, specifically a permanent life insurance product, and some funeral planning. I’ll be using a few of the seven strategies of influence, namely reason, friendliness, and bargaining. I selected these strategies because they’re the ones that I personally use everyday in my business. I’ll use reason, because there’s an abundance of data to support my argument. Friendliness is just good business and bargaining is the nature of the beast. By the end of this paper you will know that you need a life insurance product. That sentence was a demonstration of assertiveness. Now, let the persuasion begin.

Who am I? My name is Curtis Staggs, I’m an independent insurance professional licensed in the states of Kentucky, Indiana, and Tennessee to sell life insurance products and annuities. I started in the insurance industry in 2003 with Allstate marketing their home and auto insurance products. I transitioned into life insurance in 2010 and now I have the honor and privilege to help people make preparations for their family.

First and foremost, the reason you need life insurance is because you will eventually die. I know it’s something that most people don’t want to face, their own mortality, but everybody everywhere will face death at some time. This is an incontestable scientific fact. For thousands of years, maybe more, there are millions and millions of humans before you who have died. Benjamin Franklin said, “In this world, nothing is certain but death and taxes.” This is a truth we all know. This human science experiment has always ended the same way. The evidence is overwhelming. Death is a certainty; the only question is when will it happen? What can we do? We can make preparations for our families and those we love to lessen the financial and emotional burden on them. A little preparation equals a lot of peace of mind.

Unless you have vast resources of capital, life insurance is the most economical vehicle to prepare for the financial repercussions of your untimely death and the costs involved in your final expenses. A life insurance product allows you to shift the risk of financial loss from your death onto the insurance company, so your family does not have experience financial as well as emotional loss. You can use a term policy, which is a policy that expires in a certain number of years, to protect the loss of your income or send your children to college, etc. These term policies allow you to create an instant estate in exchange for a small monthly premium. Term polices are very affordable, especially if you’re in decent health. If you’re protecting the loss of income, I’d suggest that you need a policy roughly 10 times your yearly salary. So, if you earn $50,000 a year, you need a policy with a face amount of $500,000 or more. Again, the downside of term is that they do eventually expire. You can renew, depending on your age at the time, but just know you will be re-rated at your current age and health. Term policies are not usually available to individuals over 72.

The second type of insurance we’ll discuss is permanent insurance. The most common permanent insurance is a whole life insurance policy. Whole life insurance is more costly than term, but for good reason. This type of permanent insurance is exactly what is says it is, permanent. It is with you until the day you die. As long as you pay your premium, it will not expire like term insurance. Your premium rate with a whole life policy will never go up and your benefit, the face amount of the policy, will never go down. No matter what happens with your health or the economy. A whole life policy also builds cash value overtime that you can borrow against. Some people use whole life as a savings mechanism because of these cash values features. Whole life is generally used to protect against funeral and final expenses. According to the Funeral Consumer Guardian Society, an average funeral in Kentucky using earth burial costs $6,000 to $10,000 depending on preferences. A typical whole life policy is written for $15,000 to $35,000 coverage to allow for inflation costs and other final expenses.

Should you choose term or permanent insurance? That’s a great question and there’s a lot of misinformation in the marketplace about this subject. Some want to argue that one type of insurance is better than the other, which is really like saying a hammer is better than a screwdriver. It’s a silly argument; better is defined by what you’re trying to accomplish. It’s really very simple. Do you have a temporary problem or a permanent problem to solve? If it’s a temporary problem like protecting your young children or spouse against the loss of your income then use term. It’s very affordable so get the longest term you can while you’re the youngest and the healthiest. You’ll never be younger than today. If it’s a more permanent problem like protecting your loved ones against the financial costs of a funeral and final expense then use permanent insurance. The truth is most people need both types of insurance at some points in their life. I have a young family, so I have some term insurance while their still at home. I also have a whole life policy because I know some day I will die and I don’t want my loved ones to bear any financial burdens. The permanent problem of death is something that we all face, so everyone needs some permanent insurance. It just makes sense.

Once you’ve dealt with the financial burden, you need to also take a few moments to address the emotional burdens. I’m talking about funeral planning. While you’re still alive you can make some basic decisions about your final wishes so your loved ones do not have to guess what you would have wanted. Write it down. You can obtain final wishes guides from most whole life insurance agents or on the internet. Write down your wishes. What funeral home do you want to use? What music if any do you want played? Do you have a minister of choice? You get the idea. You are doing such a service for the people you love. They won’t have to worry or stress about the little things. This will help your loved ones as much if not more than the financial planning. As I said earlier, a little preparation equals a lot of peace of mind. Prepare today and you’ll find peace of mind too.

I can be reached at 270-339-3672 for a FREE quote.

Life and Health Insurance Foundation. Web. 13 Feb. 2011. .

Funeral Consumer Guardian Society: FCGS. Web. 13 Feb. 2011. .

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