Jamhuri Magazine: Life Insurance & The Future of Loved Ones

Life Insurance & The Future of Loved Ones
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Tony Ngari on 13/10/2011 14:17:00

Buying Life Insurance has always been a relatively slow process. The average
middle income family does not even have a life insurance policy. Surveys also
typically reveal that households are significantly under-insured. Apparently, 5
out of 6 consumers because of human nature, just never get around to meeting
with an agent, and even of those that do only some could be considered
appropriately insured. Don’t we as a society want those bereaved families to
be well taken care of as we want those who survive their breadwinner’s
wrongful accidental death?

Few really imagine themselves as dying prematurely, and many think that if such
a death were to occur, it would necessarily occur in a wrongful accident, and
therefore their family could sue the other party for millions. But such thinking
is faulty; the chance of dying from a brain tumor or other unimaginable illness
is much greater than the chance of dying from someone’s negligent act. It’s
a public disservice to allow individuals to maintain such false beliefs.
As a society, we require that parents take lots of actions for their
children’s wellbeing (CHILD SAFETY SEATS, VACCINATIONS, ETC); therefore
motivating appropriate life insurance coverage is entirely consistent with such
well- founded care. Avoiding discussions about life insurance may well be human
nature, but that does not mean that it is rational, reasonable, or even good. In
many arenas, (social security, mandatory enrollment in 401(k) plans, bicycle
helmet laws, mandatory car insurance, vaccination of children, and quite
possibly soon- mandatory health insurance, etc.) laws are passed to require
individual responsibility. The wisdom of such laws is widely accepted. While
some might argue that mandatory auto insurance is designed to protect others
that one might harm, the life insurance situation is entirely analogous; the
“other” being protected is actually not just any “other”, but a loved
one. All that is required is the parent to view themselves as fiduciaries with
responsibility to protect their family’s primary asset (his/her future income
stream) or the dependents’ benefit. Imagine an ideal world, where everyone had
life insurance. Wouldn’t that help to reduce the cost of life insurance
coverage?
Quite simply, more effectively motivated life insurance buyers – by using
society’s means of collective wisdom persuasion- to make sure that their loved
ones are appropriately protected (regardless of how they might prematurely die:
illness, accident, or wrongful accident), could really turn family breadwinners
into life insurance buyers and speak to society’s best collective wisdom about
a subject like life insurance. And when that happens, everyone will win.
About this column:
Tony Ngari is a local Independent Representative of Primerica Insurance Agency
of Massachusetts, Inc who has been helping clients representing Primerica Life
Insurance Company. You can find out more about Tony and Primerica by calling
978-996-7579.
The cost and availability of life insurance depend on factors such as age,
health, and family medical history. If replacing your insurance, never cancel a
policy before your new coverage is in place. Policies commonly have surrender
charges and replacement may carry income tax implications. Any guarantees are
contingent on the claims-paying ability of the issuing insurance company. If you
are considering the purchase of life insurance, kindly consult me to explore
your options.
Tony Ngari