Colleen Callahan Gives Advice About Life Insurance
Dec 01, 2015 01:25PM
By Colleen Callahan
Earlier this year I wrote an article that began with “I sell life insurance.” It is more accurate to say I help people buy life insurance. When I meet with a person or a couple, the discussion focuses on their needs, goals, and wants. It is important to understand the purpose of the purchase. Recently a couple with young children was referred to me by one of their advisors. We discussed the basic reasons people purchase life insurance and arrived at an amount for each of them. The stay-at-home spouse, “A,” completed the application and was approved in a very short time. We completed the delivery of the policy. “A” is now insured and the family is protected.
The working spouse, “B,” completed the application and the exam, but refused to provide additional information that was requested by the underwriter. In the end, the policy was issued with a higher rating due to an undisclosed health issue.
The astounding ending to this story is that “B” refused to accept the policy. There is a belief that the life insurance available through the employer will be sufficient, but here are many holes in that argument. Employment is not guaranteed for life with this employer, the employer could change the benefit structure, the additional life insurance purchased at work is more expensive, and the price will continue to increase.
The policy I helped “B” secure would have been for a higher amount of coverage for less money and the premiums were guaranteed for 20 years. A great deal! People purchase life insurance because they love someone and want to protect them. In my opinion, “B” needlessly made a very selfish decision. I hope more of you are like “A.”
Colleen Callahan, CLU, CASL, LUTCF