4 Things Life Insurance Is Not

Are you confused about life insurance? I don’t blame you. When I first started writing about finances more than a decade ago, my understanding of life insurance was limited.

I knew about life insurance because it was offered through my employer, and I thought a $50,000 policy was a lot of money. I also recognized insurance company names from late-night TV commercials and the occasional bit of junk mail.

I understood “insurance” to be that stuff that you had to have for your car, your home, and your health. The “life” part was a big, blurry blob of “other.” If that’s how you’re feeling, here are a few tips that might help bring things into focus—by understanding the “nots.”

1. Life insurance through work is generally NOT enough. Since learning this myself some years back, I’ve noticed that many people never explore life insurance past what is offered through their work. Policies through work are a great benefit to have, but are usually limited to one- or two-times your salary or a fixed amount like $50,000. Plus the coverage typically ends when your employment there does.

How far will an amount like that go when you consider what’s left behind for your loved ones: the loss of your income and mostly likely debts and bills. What about things like rent or mortgage, child-care and education costs?

An easy way to get a working idea of how much life insurance you need is with a Life Insurance Needs Calculator from a neutral source like

2. Life insurance is NOT a luxury item. Many people have not even considered buying life insurance because they’re convinced it’s a luxury. In a recent study by Life Happens and LIMRA, consumers thought the cost of a 20-year, $250,000 level term life insurance policy for a healthy 30-year-old was three times higher than it generally is. Younger people, in particular, overestimate the cost of a term policy by a factor of five.

If you took a guess at what that policy above would cost, what would you say? It comes out to about $13 or so a month for that policy. Definitely not a luxury—most of us spend more than that on a meal out.

3. Life insurance is NOT just about covering funeral expenses. While covering funeral expenses is very important, and a major reason people purchase it, life insurance does so much more. If something happens to you, life insurance benefits can help replace lost income, or pay off a mortgage, or help ensure a college fund or safeguard a retirement nest egg.

The proceeds of a life insurance policy are generally tax free and can be used for anything your loved ones may need now and well into the future. Amazing, right?

4. Life insurance is NOT just for really healthy people. Granted, life insurance is less expensive the younger and healthier you are, but don’t discount it just because you’re not in triathlete shape!

Many people don’t considering buying life insurance because they think they won’t qualify. But when certain health conditions, such as diabetes or high blood pressure, are under control with a doctor’s guidance or medication, it’s often possible to qualify. You may even be able to get coverage after a heart attack. Just know that it is probably best to work with an experienced insurance agent if you are concerned about a health issue and qualifying for coverage.

Now, if you’re a bit overwhelmed with this information and perhaps don’t know where to start, just know that we would be happy to sit down with you at no cost to go over your needs and help you get life insurance coverage to fit your budget. If you don’t have an agent or advisor, go here for suggestions on how to find one. You can also tap the Agent Locator there to find someone in your area.

Remember, the right agent or advisor can help you make sense of the confusion and get you on track for the financial future you want—with the protection your loved ones need.


Call us today at The Roe Agency, we will be happy to go over all of your insurance needs and address any questions that you may have. (239) 593-7333


What’s the benefit of a 40-year term life insurance policy?

The importance of life insurance cannot be overstated. Life insurance coverage can offer peace of mind, security and even financial benefits, making them suitable for virtually everyone looking to take that next step in their financial journey. But which policy is right for you? That’s the real question.


Life insurance is not one-size-fits-all. Different people have different circumstances resulting in different needs. That’s why, as a prospective policyholder, it’s important to learn about the different options available to you. Let’s take a look.


The life insurance landscape in 2019

There is an obvious market for affordable term coverage beyond 30 years, and that’s because of a couple factors. For one, Americans are living longer than they ever have before. The average person is expected to live three years longer as of 2015 compared to the average life expectancy twenty years prior. Combine that with the fact most Americans still carry a significant amount of debt after the age of 65. So, what does this all mean?


It means many people (maybe even you) would benefit from a 40-year term life insurance product – much like the one we recently began offering through our subsidiary, Banner Life. Here’s why:


Typical life insurance offerings provide 10 to 30 years of protection. Our average consumer purchases a life insurance product in their mid-40s, meaning they could live another 20 to 30 years after the policy expires. Meanwhile, Guaranteed Universal Life (GUL) and permanent insurance products offer lifetime protection, but they are often much more expensive than term life insurance.  


A 40-year term plan can be two to three times more affordable than a GUL product that's set up to provide the same 40 years of coverage.


Picture this scenario...

...A married couple in their mid-40s are both looking to take out a life insurance policy to supplement their work-sponsored policies, since those provided through their employers don’t offer enough to sufficiently protect their family. The couple wants policies that cover them through at least their working years (expecting to work until age 70). They like the affordability of a 30-year policy, but wish the term was longer; a permanent policy is simply too expensive to fit into the couple’s budget.


Here’s where a 40-year term policy comes into play. Again, it can be secured at a budget-friendly rate similar to a 30-year policy, but with ten more years of financial security.  


The current state of the life insurance landscape, and the reasons stated in the scenario above, are exactly why we’re proud to offer the first 40-year term product available in the US. OPTerm 40 addresses a vital need in the marketplace for a longer duration of coverage at a price point that is still affordable for the many families seeking the stability and security that life insurance offers.


Does 40-year term sound like something that might make sense for you and your family? If so, work with your financial advisor or call us today to help you get started.


(239) 593-7333


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