WE FACE RISK EVERYDAY – house fires, driving to work, playing sports, etc – and we do many things to mitigate those risks – make sure we turn off the stove and install smoke detectors, wear seatbelts and purchase cars with the latest safety technologies, and warm up before we go out for a run. But, no matter how much we try to mitigate those risks, we know there are always accidents and adverse outcomes. For those instances, many of us purchase insurance such as property, automobile, and health insurances to protect those assets. We believe in this insurance because it is protecting something we put our hard earned money into such as house or a car. We may not always buy health insurance independently because many companies offer this as a benefit, but we have all been sick before and know insurance helps as it lowers our out of pocket costs. We value these assets because we can associate a dollar amount with these things. But when you really think about what is the most important asset in the world, you realize it is life itself. It is hard to associate a dollar amount with our lives because how do we value our own lives? It’s hard and as a result, most of us never insure our own lives; the single most important asset in the world.
I’m an accountant by training and the life insurance industry is the last place I thought I would be – I had likened the life insurance industry and those that sell it similar to used car sales and “ambulance chasers”. But the more I looked at life insurance products through the lens of an auditor and an accountant, the more the benefits made sense, like the tax advantages associated with estate and gift taxes and the preservation and the transfer of wealth to our families and loved ones.
In US and European countries, somewhere between 40-75% of people do not have life insurance. It is likely that a portion of those that do have some coverage, may not have enough. In the US, some coverage may be provided by one’s employer through a group term policy but likely those coverages are not enough to provide for one’s family in unforeseen circumstances. If we can all use life insurance, then why don’t more people purchase it?
The biggest roadblock for most people is fear. Inherently, life insurance deals with one’s own life and nobody likes to think about it ending. Frankly, it’s scary to think about. This is a perfectly rationale normal human behavior; we all have this fear. We don’t know when or how it will happen, we just know that it will happen at some point. And when we go, what will happen to our loved ones? What kind of situation will they be left in, especially if we are the providers? Wouldn’t one like to have some certainty about how their family will be taken care of financially?
The second roadblock for most people is the thought that life insurance is only for the wealthy or those who have assets. The truth is that everyone would benefit from having some sort of insurance. Yes, life insurance can be used as a wealth management/transfer tool. But there are many other ways it can be useful, such as helping with outstanding mortgage payments on a home, providing tuition for one’s children, or creating charitable contributions for one’s causes,. For many, a comparatively small premium can provide multiples of coverage for your loved one
There are many types of life insurance that are available. The life insurance market is competitive and thousands of agents and brokers are trying to get your business. First off, start listening. Understand that life insurance is useful, it is important, it is necessary. From an accountant’s perspective the numbers add up. Secondly, not all agents and brokers are the same. When you work with a broker or agent you are not buying an insurance policy from them, you are buying their advisory and consultation. We at Trinity Business Solutions can provide you the expertise you are seeking and the access to a multitude of products across various jurisdictions that will meet your various situations, needs, and goals. From term life to universal life and from US, to foreign, to offshore products, Trinity will custom tailor solutions that will serve you and your loved ones and will help ensure that the future of you and your loved one’s is secure, providing you with peace of mind.
Please contact Steve Man at firstname.lastname@example.org for more information
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