Hi, my name is Barry Sterling. I am the owner and operator of Sterling Select Insurance agency. We are an independent brokerage that operates in the states of Kansas and Oklahoma. I wanted to take some time and create a blog post to help sort out some of the misconceptions that we see with our clients as they engage in the buying process. Also, you’re going to want to read to the end, because I’m going to give you some use cases to help some of those people who think that life coverage is a poor choice of capital resources.
1. Understand Key Differences of Products –Anybody who tells you, “One size fits all” or “buy product ‘Z’ do ‘X’ with the difference” is operating from a position of having a preconceived notion about the marketplace, you, your family, and the things that make you unique. This may be detrimental as we believe you should have as much information as possible about the pros and cons of term, whole, and indexed life products.
2. Secure Proposals from Multiple Carriers -As much as one product may be called by the same as another, no two companies are the same. Some companies provide additional elements of coverage within the policy at no extra perceived cost. Whereas another company may provide lower coverage at a higher respective cost.
3. Consult With a Licensed Practitioner –The duty of an agent is to thoroughly explain the policy to you in detail. At Sterling Select, we maintain a robust digital presence to make sure that our clients have access to us for any question, no matter how small. If someone values you as a person, they will take the time to make sure your questions and concerns are satisfied even AFTER the sale.
4. Discuss With People You Trust –Life insurance isn’t for us, right? It’s for our people and it’s for something which is greater than us! Congratulations, you’ve recognized your most important role in learning to be interdependent! Make sure you at very minimum present your decision to the beneficiaries. Although your policy will always be on file, it’s important key people in your life are aware of this in the event of the unexpected. Also, in the event of certain medical emergencies, they can initiate coverage for qualifying events to help with medical expenses.
5. Don’t Forget the Next Steps –Securing valuable coverage is only the start of a larger plan. Keep in mind that for your long-term financial goals to be realized, you may need to plan a formalized will or perhaps have a conversation with an attorney to help in forming a trust to help safeguard your wishes.
- David is 23 and Tamara is 22 and they have a cat. They do not plan to have kids, a mortgage, or acquire tangible assets. In fact, they both very much enjoy living a simple lifestyle. Tamara regularly donates time to the local foodbank and the shelter. David enjoys art and they both work at a small local business. David and Tamara do some research and decide to get life insurance now while they are in good health. 10 years later, David is struck by a drunk driver attempting to elude law enforcement. Tamara is devastated but will now have the funds to lay David to rest according to his wishes. Fortunately, David also had created a will in conjunction with this attorney. Remaining funds were distributed into a trust which provided Tamara indefinitely and Tamara never had to concern herself with replacing David just to help pay the bills. 20 years later, Tamara began having health complications. Due to a specific provision of the trust, a portion of the funds had purchased additional coverage. When she passed at the young age of 56, the foodbank then became the recipient of trust funds, again, due to a specific provision in the trust fund created over 34 years ago.
- Sam is 30. He is not married. He has no intention to marry. Two years later he meets the woman of his dreams; Shanessa. They get married and have kids. After the birth of the second Sam develops a chronic cough. He doesn’t want to see the doctor without first applying for life insurance. His blood test from his fully underwritten revealed his chronic condition. Sam encounters a rate increase and is required to pay an additional 65% over initial premium to place coverage. Sam regrets not planning sooner when he had better health. Now he foregoes coverage because it is too “expensive”.
- Randy is 45 and remarried a few years back to Sarah, 36. Randy will, “be damned” he buys life insurance just to pay for Sarah’s “next boyfriend”. 8 years later Randy is diagnosed with cancer. The health insurance at his company works, but the co-pay is much more than expected. Unable to work and with benefits running out, his company “lets him go” because he did not return to work within the allotted 45 days. The group life policy went too. Sarah picks up a second job on weekends at a local bar. Sarah WANTED to be there for Randy, but the bills were too much. One night she thought, “if he had REALLY loved me, he would’ve helped me take care of him!” Randy passed destitute and his body was processed by the State. Sarah had moved on much earlier than that. She couldn’t afford that struggle!
Conclusion: Life insurance isn’t just about death and dying, it’s about keeping the relationships you value intact. No one can replace you. You are unique. Your values deserve to be honored if you place the time to honor them yourself. If you would like to learn more, visit our website at http://www.sterlingselect.net or get a live quote https://bit.ly/30caQMx.