I Have Insurance Through Work, Why Do I Need More?

I have life insurance through work, why do I need more than that? 

This is a question I have heard in my own house, and I can guarantee that my husband was not ready for the TED talk I launched into upon hearing it.  However, it made me realize how misunderstood the value and leverage that life insurance can provide is to people who do not see it every day.  Policies usually come with big numbers – $1,000,0000, $2,000,000, $5,000,000, etc.  Amounts that most people think are so large as they have likely never seen that in their bank account.  Surely that is too much for me.  The $300,000, $500,000 that I get through my employer should be more than enough.

When that question was brought up in my house, my question in response was “how much is our mortgage?”  Life insurance is so much more than final expenses and a cushion in the bank that will last long enough to find a new normal.  $1,000,000 goes fast when you think about paying off the mortgage, additional childcare costs, cost of children’s education, supplementing lost retirement savings, supplementing income until retirement – the list goes on and on.  Is it fun to think about?  Absolutely not!  But I would rather have those tough conversations now than wish we had later.

Once you’ve gotten past that hurdle and decided on the right amount, here comes the next obstacle: underwriting.  You’re in luck!  Not only do you have our insurance team to guide you through the process and advocate for you, but the insurance companies are also starting to get with the times.  Electronic applications take out the hassle of scanning/emailing forms back, missed signatures, and incorrect forms.  During underwriting, the majority of companies no longer do phone interviews by default.  Now they do online interviews that you can complete any time of day – even while watching TV.  The medical exam?  No longer an automatic requirement for many cases.  Certain carriers default to your medical records, sometimes you can use labs and notes from your annual physical with your primary care physician, and some carriers are content with reviewing the routine reports underwriters pull across the industry (motor vehicle report, prescription report, etc).  All that to say, don’t let the short-term bother of underwriting stand in the way of rounding out your financial plan and protecting those you love the way you would like – it may not be as difficult as you think!