Ray Hodges Financial Group

 
 
1.   I don’t have kids or a spouse so I don’t need life insurance.

Who will pay for your burial?  It will cost about $10,000 to give you a proper burial unless you were a scoundrel.  Don’t be a financial burden on your family.

 

2.   If we talk about life insurance, we’re speaking death into existence.

So, do you run from black cats and avoid stepping on cracks too?  Death is the end of the lifecycle.  Accept it.  How do you expect to get to heaven?  No short cuts.

 

3.   Someone has to die to reap the benefits of life insurance.

Not true.  Companies offer scholarships, critical illness payouts, loans against cash value all of which can be used while you’re still in the land of the living.

 

4.   If I die, all of my debts and bills will be written off.

Not necessarily.  Your spouse or loved ones could still be held financially responsible, especially for mortgages, auto loans, etc.

 

5.   The lump sum payment from life insurance will be taxed by the IRS.

False.  The death benefit paid out by the insurance company is 100% tax free.

 

6.   It’s too expensive.  It only costs what you can afford.

 

7.   The insurance company won’t be around to pay the death benefit to my loved ones.  Old Mutual in business since 1845.  Foresters in business since 1874.  Mutual of Omaha in business since 1909.  How long will your loved ones be here?

 

8.   I know all about life insurance.  Really?  Is that why you’re underinsured and exposing your family to financial heartache if something happens to you?

 

9.   People with poor health can’t get life insurance.  False again.  Depending on the insurer, a person with less than exceptional health may not even need a medical exam.

 

   10.  I’m the only breadwinner so only I need life insurance.
  Are you suggesting your spouse contributes nothing?  You’re brave
and short sighted.  How much would child care, housekeeping, school transportation, etc. cost you?
 


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    Author

    Ray Hodges owns Ray Hodges Financial Group, an annuity and life insurance practice dedicated to helping businesses and families avoid financial hardship due to unexpected death and disability.  In addition, the practice helps individuals avoid outliving their retirement savings by using equity-indexed annuities to diversify their retirement savings.

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