Insurance - Being Clear About Your 'Why'

Why insurance? If you're considering buying insurance, the number one question you should ask yourself is "why?" The second question you should ask yourself is, "what for?" It's easy to write off certain types of insurance products, but one thing to remember is that these these different types of insurance and insurance products exist for a reason.

Why insurance?

This should be personal to you, but understanding your 'why,' and being able to communicate that to your agent is incredibly helpful in finding the right product for you. Are you looking for protection? Securing your legacy, and passing on your assets or wealth? Do you want to make sure your burial services are covered? Do you want to lessen the cost/burden of long-term care? Are you looking to have retirement income that will you will not outlive? Are you looking for an investment vehicle? To cover estate taxes? Knowing the answer to this question helps guide you in the right direction, and choosing what is best for you and what you want to achieve.

What or Who for?

At first glance this question is the same as the first, but this question helps you get specific. It's easy to say, "oh, I want protection, or I want to have my burial services covered." But, who benefits? What is the intention. Some answers are more straightforward, like in the case of final expense insurance where you want to make sure that you have at least some money available for burial services. But even this question requires you to answer, "for who?" Who will be the one handling your arrangments? Are they aware? Do they know your burial wishes? The reason answering this second question is so importan is because we want to make sure we have the BEST product for what you actually want. Some products do the job at the surface level, but let's say from a tax-perspective, it's a bad product for what you're trying to achieve. That would be an unfortunate situation to be in, and one that every agent should be on the lookout for you.

At the end of the day you want to make sure sure that you're buying is in your best interest, and that it is doing what you want it to do for you. A good agent will help you do this. A good agent will act with honesty, and integrity.