Column: Do I need life insurance?

By: Blake Wimsey
Special to Guthrie News Page

Blake Wimsey operates Foundation Insurance in downtown Guthrie.

The short answer is yes, you need it. And you want term insurance. Let’s start with explaining exactly what term life insurance is–it pays the face amount to your beneficiary(s) if you die prematurely (during the policy period). Life insurance is available to everyone although some people with certain health conditions should consult special risk managers for further advice.

Why is this important? Well, if you have a spouse, kid(s), a mortgage, any other debt, what happens to all of this if you were to pass away prematurely? It certainly doesn’t all just fix itself. In spite of their mourning, your family will still continue to have to pay their bills. Your mortgage company won’t call the next day to advise your family they are waiving the balance of your loan. That means if your family depends on you for a source of income, they’re going to have to make a drastic lifestyle change. What would that look like for them logistically? They may have to sell the house and/or vehicles. Your spouse may have to get a second job. That means less time spent with your surviving children.

Unless of course, you made the decision to pay some of your monthly wages into a social security scheme. Ultimately, this would mean that your family could be eligible for Social Security survivor benefits, which will ensure that they have access to your lifetime earnings, on top of their own. By doing this, your spouse won’t have to worry about getting a second job, and they can continue to live in the house that you once lived in. How good would it be to have this peace of mind?

“Wow, Blake, way to put me in a good mood.”

That’s kind of the goal here, because that’s the truth of what could happen if you don’t have something in place to protect your family. The adverse effects of not having ANY type of insurance in place are not fun to think about. Could you imagine what would happen if you didn’t have auto insurance and you were at fault for an accident? You’d be stuck with the bill for your car, their car, and any medical bills associated with any parties involved.

When considering the purchase of any insurance product, it’s important to think about the results of what could happen if you DON’T have a policy in place. There is no actual gain to be made by purchasing any sort of insurance policy. The definition of insurance is to “transfer risk.” You’re simply softening the blow if something bad were to happen. Insurance is not an investment, it’s a product to protect your investments and assets. Would you consider yourself an asset to your family?

The best part about term life is how cheap it is. If you’re relatively healthy, you can get a rock solid life insurance plan for about $30/month. You can’t even get dinner for $30 anymore.

One of the best gifts you can give your family is the peace of mind knowing that if something happened to you, bills and lifestyle changes would not get in the way of their mourning, and your family would be taken care of.