May 31, 2021
Does your life insurance fit your needs? Do you need to renew it soon? No one really enjoys thinking about or even purchasing life insurance. However, if you want to ensure that your family is cared for in any eventuality you’ll have to deal with life insurance every now and then.
I have a story to share with you about a client of mine who was in for a shock when the time came to renew his life insurance policy. See what you can learn from his story; listen in to hear it and discover my 3 takeaways.
You probably have an idea of what term life insurance is, but it may have been a while since you have heard a proper definition. Term life insurance is temporary life insurance. It’s like renting an apartment. When you rent an apartment you sign a lease for a specified amount of time. That means that you’ll have a guaranteed place to sleep for that time period as long as you pay your rent.
With term life insurance you decide on the time period or term. You could choose it to be for 10, 20, or 30 years. When you decide on the term you lock in the monthly payment price for that specified amount of time. As long as you pay the premium, you’ll have life insurance coverage.
At the end of your term, you’ll have to renew to continue coverage, but the terms may be quite a bit different as my client learned. This client had had a $4 million policy for a 10-year term. However, when he received notice that the policy was going to expire, he was in for quite a shock. His monthly rate was going to skyrocket from $140 to $830 a month. You see, the pricing for a 30-year-old is much different than that of a 40-year-old. Learn what you can do to help alleviate a bit of the sticker shock when renewing term life insurance.
I learned 3 things from my client’s story that I would like to share with you.
I hope that you have been enjoying all of the tips, tricks, and stories in this Financial Planning Basics series. My goal is to empower you with knowledge so that you can attain the financial freedom to live the life you truly want. Please feel free to subscribe to my newsletter so that you can get FREE worksheets to help you better manage your finances and run your business.
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