ST. CROIX INSIGHTS

Why Do So Many People Hate Life Insurance?

BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC

That was my initial reaction to life insurance. Maybe not “hate” but something more like denial in the need for it. Denial that one day my physical life will sunset. I remember my first experience talking about life insurance was with a State Farm Agent, Dave Abraham, at the ripe old age of 23 or 25 years old. At that young age, I was already married, had a kid, and a mortgage. I suspect your list would be no different than mine when you have a family. Dave did his job, he talked about life insurance, looking to protect my family, but I wasn’t ready to face the realities that I could meet my maker at that young age. Who the heck wants to confront that?

The Importance of Life Insurance

I believe that the typical response I receive when I approach this topic with clients is the same reaction I had at the time: denial followed closely by a lack of understanding and relevancy around how life insurance fits into their overall financial plan. That’s when I have to really go to work to help them understand and convey the importance so I don’t have to apologize to their families because they didn’t take the necessary steps. But it’s not always easy.

Life Insurance Hudson

Yet even as I write this blog today, the reality is I don’t think I’m going to die nor do I think my clients, friends or family members are going to die. I suspect the millions of readers reading this blog (I wish) have the same reaction – not me. I’m not going to die today or tomorrow…or ever. Yet just in the past week or two, I bet you know some who died, someone who was diagnosed with a major illness, or had a life-saving medical procedure. I’ve witnessed all three just this week. Sometimes it takes its toll!

“I’ve delivered a few death benefit checks in my financial services career so far. And, what’s scary as a Certified Financial Advisor is that in the years to come I’ll be delivering many more. Someday someone will be delivering mine to Mrs. Anderson.”

Insurance & Financial Planning

She’ll have tears of JOY in her case and will be ready to hire that pool boy that I’ve denied her all these years. Because I finally got it (I got over the mental hump), the importance of life insurance plays in my financial plan. My physical life will sunset, but I don’t want mine or Mrs. Anderson’s dreams to die prematurely.

How about you your families?

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