With the new year, people contemplate making all kinds of changes. Sure, they could implement those changes at any time during the year. But the new year tends to be a catchall of resolutions. The change from one year to the next seems like a convenient time to take actions that we’ve been avoiding all year. So along with your other New Year’s resolutions, make a resolution to buy as much life insurance as you can afford.
There are plenty of reasons why the new year is an outstanding time to do just that.
Make a New Year’s Resolution for the Benefit of Your Loved Ones
It’s understandable that most people don’t find life insurance to be a comforting topic. It is, after all, sort of like betting on your own death. That’s because the “payoff” of life insurance doesn’t happen until you die, and the benefit goes to your loved ones.
But that’s an important point all by itself. Coming right after Christmas and Hanukkah – and the season of giving – the new year is perhaps the ultimate time to give the greatest and final gift you can give to your loved ones, which is the “gift” of financial survival in the event of your death.
Unfortunately, millions of people are carrying inadequate life insurance, or no coverage at all. If you fall into the second category, you should at least get a policy that will enable your family to weather the tumultuous times that will follow your death.
And if your coverage inadequate, this is also an excellent time to get additional life insurance. “Inadequate” coverage means that while you have life insurance, it won’t be enough to cover all of the financial needs that you might expect a policy to cover, including:
- Final expenses
- Uncovered medical costs
- Lost wages
- Payoff of debts, like credit cards, car loans and the home mortgage
- Enough money for the family to survive for at least a while after your death
If your life insurance policy will be insufficient to cover all of these expenses, then you should set a New Year’s resolution to fill in the gaps.
You’re Not Getting Any Younger – and that Means Plenty With Life Insurance
The flipping of the calendar to a new year should be a subtle reminder that you are getting older each year, at least by a little bit. That really matters when it comes to life insurance.
Life insurance premiums are calculated based on risk factors. One of the biggest is your age. The older that you are, the more expensive your premium will be. The reality is that – right now – you are as young as you will ever be. That makes now very best time to apply for a life insurance policy, and to get the best rate possible.
Since New Year’s is based on the calendar, and the calendar is all about time, the new year should be a reminder that time is passing. And the time to get life insurance is now.
You Still Have Good Health – Don’t Wait Until You Don’t
If you are ringing in the new in good health, then you really have something to celebrate. But health can be a slippery slope. An accident, a sudden illness or getting an unfortunate diagnosis could change your whole game.
In addition to your age, your health is also a major risk factor. Certain health related conditions can result in your paying considerably more for a life insurance premium. And beyond a certain point, life insurance may even become impossible to get.
This is why you need to seize the day if you are in good health and even think you may need more life insurance.
As is the case with most things in life, the time to make major moves is when life is good, such as when you are enjoying excellent health. Should your health condition change, it’s likely that there will be no opportunity for you to get coverage after the fact. The time to act is always before a crisis hits.
Do it While You’re Planning Other Changes in Direction
The new year often brings on a series of changes. It’s not that we can’t make these changes during other times of the year. It’s more of the psychology turning the calendar over to a new year. In the words of Billy Crystal in City Slickers, it’s a do-over.
That’s often how we see New Year’s. It’s an opportunity to wipe the slate clean, and start fresh. This is why so many people begin diets, exercise programs, savings and investment programs, establish new relationship goals, and even make plans to purchase a home. The holidays are over, and the long winter season begins, making it a natural time for new resolutions and commitments, as well as strategies to make them happen.
Make buying more life insurance one of those resolutions. As the year unfolds, not only will you get busy, but you will also forget about your New Year’s resolutions. And soon enough, you’ll be a year older and perhaps even in a different health situation.
Which brings up the next point…
Sometimes There Really Is No Tomorrow
It’s very typical – even part of the human condition – that we procrastinate. We know what’s right, and we have good intentions. But we fail to act on them because we assume that there is always tomorrow to make them a reality.
But sometimes, there really is no tomorrow. Should you pass away, without ever having had adequate life insurance, there will be no chance for your family to benefit. And should your health suddenly deteriorate, it will be too late to get the life insurance coverage that you really need.
It’s a scary thing, that we often don’t think about how serious matters like life insurance are until we are confronted with a scenario that suddenly limits our options.
The new year is an opportunity to contemplate those things that you don’t think about during the rest of the year. Dare to consider how your loved ones will fare in the event of your death. Then commit to taking action to getting the life insurance coverage that you need, but may have been putting off during the past year.
Just having adequate life insurance can give you the peace of mind that will free you up to concentrate on other things in your life. You owe it to yourself in the new year.
