Today I am writing about my biggest professional failure. I own an insurance agency and serve as a trusted insurance advisor to my clients. When you break it down at its simplest form, I sell insurance for a living. It’s not a secret and this is how I provide for my family. Ever since I began my career, I’ve never wanted to be looked at as a “salesman”. I am not sure why but that always just seemed like a dirty description for what I do. Everyone seems to understand the importance of having home/auto insurance. Plus, the law requires that you carry auto insurance if you have a vehicle and your mortgage company requires that you carry homeowners insurance. That makes the conversation easier – you’re coming to me so you can purchase something that you are required to have. Then it’s just a matter of me understanding your exposures and your tolerance for risk. That’s not so bad and it’s an easy conversation/transaction to have.
So, where have I failed? My failure has been in my reluctance to insist that clients have adequate life insurance. Again, I have never wanted people to think of me as a salesman so I have shied away from really trying to “sell” life insurance. I’d mention it once but then I would let it go. This behavior has been a disservice to my clients and those that trust me for advice. This article serves as a plea, an awakening to the importance of life insurance. It is an admission of my own shortcomings in persuading friends, family, and clients to embrace this essential protection. Regardless of whether you choose me or another agent, I hope this article will help you grasp the significance of safeguarding your loved ones with life insurance.
In the United States, the stark truth is that only 53% of individuals possess life insurance, as revealed by LIMRA’s 2022 study. That 53% includes those who only have an employer sponsored plan. Even more disconcerting, a staggering 30% of Americans view life insurance solely as a means to cover funeral expenses. The truth is far more profound: life insurance encompasses income replacement and wealth transfer, ensuring financial stability for those left behind.
If you have a family, have you thought about how their life would be if you were to die unexpectedly? It’s at the point in this article where most of you are thinking, “this doesn’t apply to me because I have life insurance at work”. If that’s you, maybe it’s time to look at what you actually have through your employer. Too many people place undue reliance on employer-provided life insurance, unaware of its inherent limitations. Such coverage is contingent upon your employment, vanishing the moment you quit or retire. Do not let your family’s security hang by a thread tied to your job; it is an uncertain safety net that leaves them vulnerable. Additionally, it’s usually not nearly enough coverage. Consider the reality of most well-paying jobs in Northwest Indiana, where industries such as steel mills and trades dominate. The life insurance policies offered through these trades often amount to a mere fraction of a year’s salary, leaving significant financial gaps in the event of tragedy. Such minimal coverage fails to adequately address the long-term needs of your family, whose livelihood depends on your income.
Life insurance is a unique purchase in the sense that, most of the time, you’re paying for something that you will not personally benefit from. It’s not a purchase for self-gratification; it is a selfless act of love. Unlike most acquisitions that primarily benefit the individual, life insurance exists to safeguard your family’s future. It is the assurance that, even in your absence, their well-being is secure. Do not gamble with your family’s financial well-being by relying on the uncertainty of crowdfunding. Your loved ones deserve better than becoming a charity case due to your unwillingness to sacrifice the financial equivalent of a delivered pizza each month. Take charge of their future and provide them with the protection they rightfully deserve.
There is also an unparalleled advantage of life insurance—its death benefits are, in most cases, tax-free for your loved ones. When viewed as an investment in your family’s financial stability, life insurance yields one of the most rewarding returns, offering immeasurable peace of mind during the most challenging times. And the best part, it is insanely affordable while you’re young-ish and healthy. Unfortunately, I have clients who have held off buying life insurance for years and then want a policy after they’ve received horrible news from their doctor. Waiting until a diagnosis or a health crisis strikes to consider life insurance is akin to calling me for home insurance when your house is engulfed in flames. Don’t wait until your house is on fire to buy insurance. There is never a better time to buy life insurance – it only gets more and more expensive the longer you wait.
Over the years, I have endured countless heart-wrenching conversations with friends, family, and clients who, after a loved one’s passing, discovered they had failed to secure life insurance or didn’t have enough life insurance. It is a conversation I wish to spare you from experiencing. The pain of realizing that proper precautions were neglected, leaving families in dire circumstances, is unbearable. I am committed to preventing such conversations from happening again will relentlessly remind and educate people about the paramount importance of life insurance, even if it becomes repetitive or seemingly annoying. My mission is to ensure that every individual comprehends the severity of not having adequate protection. Regardless of your choice of agent, take action today to secure your family’s future. Embrace life insurance as a profound act of love and a powerful safeguard against the uncertainty of life. As depressing as it is, the only certainty in life is that all of us will die at some point. At least have peace in knowing your family will be financially secure after you’re gone.
James Hazzard is the owner of Samuelson Insurance Agency in Portage, Indiana. With years of experience in the insurance industry and entrepreneurship, he aims to educate readers and clients on various insurance and entrepreneurial related topics to help them make informed decisions. Please note that the views expressed in James’ articles are his opinions and should not be considered professional advice.
