Monday, November 19, 2018

My Stories from the Field - Chapter 7

This is the seventh post in a long sequence where I want to share stories of real people I have met either while working with a life insurance company, or as an independent investment adviser. My goal is to share their stories so I can impart the lessons I learned in the hopes that these lessons will also serve others - this is for you, my readers!
*All my subjects will be either John or Mary, for privacy reasons.

We have been talking about situations where people had to come up with money to bury loved ones who didn't have life insurance, as well as instances when I met people who had left behind policies for the family. This time I would like to share 2 situations that come to mind as examples of people who had coverage in place when I met them but it was not the right type of coverage for their needs.

Before sharing their stories, I would like to take a moment to state that I don't advocate for permanent insurance instead of term, any more than I preach for term insurance instead of permanent. I believe that each situation is unique and therefore each person will need something a little different from the next. Rarely are there situations, when it comes to life insurance, where one size fits many - and never all. This is why I always recommend a talk with a licensed professional who can assess the situation and provide a tailored solution that best fits the family's circumstances.

I met John and Mary late one evening while I was in the field, working with life insurance company. They had policies on their grandchildren with the company where I worked - and this is why I met them. During our conversation, they said they were covered through a different company for an amount that they felt was good for them. This was good news for their family. I offered to take a look at their policies, so they would know what they have - usually the average person is not 100% sure of the type of life insurance, and many times they don't even know the exact amount.

Once I saw their policies, I had to tell them that their coverage would become too expensive (to the amount of many hundreds a month that they would not be able to pay over a long period of time). Plus the monthly payment would be higher every year. Mary started crying when she saw the numbers, because they were in their late 50's and John was the only one with an income. By mid-60's this family would have lost their life insurance because the policies they had would become too expensive for their budget. 

This turned into a moment that made me appreciate the position I was in, to be able to help middle-class families have the protection their loved ones need. It was one moment out of many but still over 10 years later, I remember it with a mix of happiness, satisfaction and pride, as well as gratitude for the opportunity I had.

The second situation that I want to share here is Mary's story. She had just turned 50 at the time we met and shared excitedly that she had joined AARP. One of the benefits they offered her was a life insurance policy for a good price - her perception - and she had taken advantage of the offer. We reviewed her policy together and she learned that every 5 years she would have to pay more, with coverage ending at age 85. This is not necessarily a bad thing in and of itself, and this policy can be good for certain situations. Mary's approaching retirement meant that she would lose the policy before 85 due to premiums too high to be affordable for a single woman living off social security and a little pension. Being able to get her into a better place for protection made me appreciate more the opportunity I had, and also reaffirm the responsibility that came with it.

Please remember this:
Having insurance to protect your family is better than having no insurance. The best kind of life insurance is the one that fits your needs. Nothing is set in stone, therefore it can and should be updated periodically, to keep up with what you need. 

Monday, November 12, 2018

My Stories from the Field - Chapter 6

This is the sixth post in a long sequence where I want to share stories of real people I have met either while working with a life insurance company, or as an independent investment adviser. My goal is to share their stories so I can impart the lessons I learned in the hopes that these lessons will also serve others - this is for you, my readers!
*All my subjects will be either John or Mary, for privacy reasons.

As we are approaching the holidays, and that is a time to be spent with family, I want to talk about the different obstacles that are in the way of setting up life insurance on oneself - mainly, health issues. I mentioned a few times before that there are medical conditions that determine that a person cannot qualify for life insurance - this is known as decline in insurance lingo (or even autodecline - meaning it is for sure a decline, so there is no point in event sending the info to underwriting) - and this applies to most policies. The only exception are the guaranteed insurance policies, because they do not ask any medical questions.

Growing up in Romania, I only knew of only one elderly lady who had diabetes. I had a notion of what the condition meant but didn't really understand. While working in the life insurance industry, I met quite a lot of people who had diabetes. During my 8 years with a life insurance company that put me in front of many blue-collar workers, I learned that diabetes in pretty common in the US; in my experience about 20-25% of the people I met had it or had someone in the family who had it.

In and off itself, this wasn't a huge problems for the people I met, front the standpoint of the life insurance company, since they could still qualify for policies; as long as they had the condition under control. The challenges came when the people were not as diligent with keeping it in check as they should be. I came across such cases a few times, and I had to tell them they would not be eligible for coverage. This was a tough job because it was something that they could change with a little work.

The saddest moments with this medical condition happened when I met people with type I diabetes, and especially the children of the prospects. In those cases, about 90% of the times they were declined for coverage. It was hard not being able to help. And this made me a believer in life insurance coverage on the children - despite the advice of famous people within the financial industry who preach against it.

With this said, there are rare cases when the child needs a lot of coverage - and there are specific reasons to have that in place. Most cases, I recommended some coverage in place, that would also allow for an increase at a later time, as needed, up to a certain amount, without further proof of insurability (without having to answer medical questions). This advice that I gave in the past by no means applies to every situation and every family. Each situation is different and should be treated as such - with a professional. 

My main reason for sharing this information is that I wish you would all understand the importance of taking care of your health - for many reasons, among which is the ability to protect your family in case of situations that can affect the family emotionally and financially - such as unexpected death.

Just as you cannot buy car insurance after an accident, you cannot purchase life insurance when you need it. It must be in place before you need to make a claim.

Please remember:
Always see a professional for your family's insurance needs. Just like you see a doctor to diagnose and treat your medical conditions, you should talk to an insurance professional that can review your family's needs and advise you appropriately.

Monday, November 5, 2018

My Stories from the Field - Chapter 5

This is the fifth post in a long sequence where I want to share stories of real people I have met either while working with a life insurance company, or as an independent investment adviser. My goal is to share their stories so I can impart the lessons I learned in the hopes that these lessons will also serve others - this is for you, my readers!
*All my subjects will be either John or Mary, for privacy reasons.

I'm in a little bit of a melancholic mood today, so I decided to bring up a sad topic. I want to talk about some of my clients who have passed away. It's always sad for the family and loved ones left behind. Financial headaches only amplify the pain. After so many years helping people with life insurance, I am convinced of the importance of this type of protection. I understand how it can help alleviate the headache when at least the financial worries are lessened.

One family that is near and dear to my heart didn't have any life insurance in place when I first met them. I was able to help John and Mary purchase life insurance policies that were to take care of their final expenses, even though Mary had some medical problems, and their income was not regular. They had the wisdom to keep the policies in place over the years, while John got diagnosed with cancer and had a long and hard fight.

Through the tough years and the sad time that came, my heart went out to them. There was also a little light for me, from a professional standpoint: I was able to help this family find some peace of mind and lessen their financial burden. Even though this didn't help on an emotional level, it was still helpful; it gave Mary some stability when John passed away. For someone with very limited income and financial resources, not having to worry about the funeral expenses means the world at such a time. And I'm blessed to be able to play a role in setting this up for them.

The hardest thing I have ever had to do in my years with the life insurance company, was helping a grandfather fill out a claim form when his granddaughter died in a car accident. Knowing that John was suffering, was the only thing that prevented my tears from running down my face as I sat at the table, filling out the claim form. The silver lining in the situation was the fact that the family didn't have to come up with the money for the unexpected funeral arrangements. Even so, it was the hardest thing I had to do, and the one that most proved to me the reason why I need to keep helping people find their financial serenity by creating, protecting and transferring their wealth.

Please remember this:
"The best time to plant a tree was 20 years ago; the next best time is now." (Chinese proverb) - This goes for life insurance as well.