I hadn’t planned on posting a new message so soon, but . . .
After reading an Associated Press article this morning, I felt compelled to post a brief message about “Planning for the Unexpected!”
One of the most difficult “mean times” faced by individuals and families every day is the death of a loved one — especially if that loved one has direct responsibility for the well-being of the rest of the family.
One of the safeguards against unnecessary financial difficulties for families in the aftermath of the death of a loved one is the existence of life insurance. Now, believe me! I know how difficult it is to entertain the thought of losing a loved one — even more, actually LOSING a loved one to death! It seems that people often shy away from discussing the need and necessity for life insurance because it causes them to think about the potential death of a spouse or partner.
One “easy” solution is for people to take the life insurance program offered by their employer and feel content in the assumption that those benefits are securely in place for their beneficiaries in the event of an untimely death. On the surface, this might appear to be good planning. Digging deeper, one might discover that depending solely on employee benefits is no planning whatsoever!
The article I read this morning deals with events surrounding the federal Employee Retirement Income Security Act which is essentially designed to protect employee benefits and not necessarily the employee or beneficiary. It seems that an increasing number of cases where benefits were thought to be secure and would serve to meet the needs of beneficiaries are instead being decided in favor of the employer thus shutting out the intended recipient from needed financial resources.
Often, instead of beneficiaries receiving the sum promised, they are given only a refund of the premiums paid in to the employer sponsored plan which in most cases will not even cover the cost of a funeral! This is happening all the time!
Now, we could wait for Congress or employers or the Courts to shift gears, change directions and do the right thing OR we can take steps to make sure our loved ones are taken care of if something were to happen to us. This is the option that receives my endorsement!
The main difference between an employee sponsored life insurance program and a self-owned program is simply this — I own the program! It cannot be taken away from me as long as I meet the contractual elements of the program — paying the premiums! A self-owned program is portable (it is mine even if I change employers); it can be adjustable (often a term insurance program has options related to upgrading part or all of the coverage to a permanent program); premiums can be locked in for varied time periods (good for budgeting purposes); additional safeguards may be available (such as waiver of premium options that automatically kick in and pay the premiums for you under certain conditions).
Now, I do not work for an insurance company! I will NOT receive any sort of commission or reward for writing this! I have no affiliation with any organization that will give me any benefit whatsoever for posting this opinion! I write this because I want you to be in a position to make choices for your and your family’s future should the unthinkable occur!
I encourage you to contact a life insurance professional today! Don’t know one? Ask a friend or co-worker for a referral! Contact the company that carries your homeowners or auto insurance — they likely deal with life insurance products as well! Google life insurance companies and see what comes up and who in your area offers competent professional counsel related to life insurance.
In fact, there is a wonderful non-profit organization that can help you determine your needs and negotiate the steps necessary to obtain the protection most appropriate for your situation. It is the Life and Health Insurance Foundation for Education or L.I.F.E. You can visit their website by going to www.life-line.org
Please don’t assume that your employer sponsored benefit plan “has your back!” Take charge of your future and the future of your family, spouse or partner by exploring the power provided by owning a personal life insurance program! I truly believe you will be glad you did!
Peace!
Mark Hundley
Copyright 2008 Mark E. Hundley
