An agent in our office recently had a friend of the family die suddenly. He was a young guy, married, with three young children. This guy was the family’s one source of income. But he had no Oklahoma life insurance. Now, his unemployed wife and three small children are left with funeral costs and all the other monthly expenses that they had accrued. What‘s sad is that this kind of financial burden could have been prevented.
Hearing about this family, I couldn’t help but feel sorry for them. Not only are they dealing with the grief of losing a loved one, but now there is a financial burden that is on top of that grief. I keep thinking that if he had bought even a small OK life insurance policy, his family would not have had as much to worry about. He could have taken out a term life policy or even a permanent life insurance policy. Anything would have been better than nothing.
Life insurance pays a named beneficiary when the insured dies. But there are several different types of life insurance. The two most common are Term Life Insurance and Permanent or Whole Life Insurance. Many times it is easier to begin with a Term Life policy when the insured is younger and then as the insured gets older, invest in a Whole Life policy. Once an insured has proved insurability, it is much easier to begin a life insurance policy. To prove insurability, a Para Med is scheduled by the life insurance company. This is simply a doctor checking for blood pressure, HIV, cholesterol, and any substantial health issues.
Term Life Insurance is only good for the specific time period that the insured chooses. An insured can get a Term policy for five years or in increments of five years until they reach the age of 65 or 70. This policy will only pay a death benefit if the insured dies during the term of the policy. Typically, Term Life has the lowest premium in the earlier years. However, once the policy expires, a new policy will cost much more.
Permanent or Whole Life Insurance is intended to provide protection throughout the life of the insured. With Whole Life there is a fixed amount of insurance at a definite premium that is paid each year in the same amount during the entire lifetime of the insured. So there may be more of a premium due each year, but the policy does not expire unless the premium is not paid.
Many people think they do not need life insurance, especially if they are young and healthy. But that’s exactly the time to start the policy. Sometimes it’s not just for the sake of the insured, but the family. They are the ones left with the bills and funeral costs and medical expenses. Don’t let your family get caught in this trap. Help take care of them before it’s too late.
If you have questions or would like more information, please feel free to contact us. Visit our website at www.rci-ins.com or give us call at 800-753-5797. RCI Insurance is located in Claremore, Oklahoma. We would be happy to answer any questions you may have or give you a free life insurance quote.