While the above image is quite hilarious, I’m quite serious when I’m talking about getting your life and disability insurance while you still can before it is too late, and want to share a recent story with you, that is unfortunately way too common with the consistency of the beat to a Salvation Army drum. I’ve seen it happen time and again, despite my best efforts to tell this story or one like it, and educate the public. Don’t let yourself be another example and testimony for me to share. Your ability to get insurance while you are still healthy is no laughing matter.
I must say as a life and disability insurance professional with 20 years experience, I am beyond exasperated at times with the human psyche when it comes to the management of risk and procrastination. Why is it that some people who are relatively younger, with perfect health in every category, who would qualify for superman rates if they applied for insurance, won’t take a policy even if I’m practically giving it away for free, and think they have all the time in the world to get around to it? And conversely, why do I run into other people with horrible, absolutely terrible health who are grasping for straws at the 11th hour, demanding and insisting that we write them a policy? Oh and by the way, it better be the best one with all the latest features, bells and whistles with a very competitive price. Oh and did I mention, they want it issued yesterday? Really? LOL. Wow. I just had a case like this that has provided me the inspriation to write this particular issue of my “financial e-TIP$.”
First let these words resonate:
- You do NOT have all day when it comes around to buying your life and disability insurance.
- You cannot get it only when you NEED IT, or when it’s convenient, or you feel like eventually getting around to it.
- Life and disability insurance are like a parachute, or a life jacket, or religion, or a firearm, or a first aid kit, or a Swiss Army knife or a seat belt… you need to GET IT – BEFORE you need it!!!!!!
- You are not holding the all the cards. Life, fate, and the insurance companies are holding all the cards and you are at their mercy. You are not holding anything, and your insurability, i.e. your ability to get an offer can evaporate just like that, with the snap of a finger.
- Whether you decide to buy or not to buy, your one or two policies will not make one iota of difference on the financial security of the insurance company, or me as an insurance professional.
- However you do need to realize your entire financial security, the difference between poverty and total destitution Vs a paid for home, peace of mind, zero debt, a paid for college tuition, and the ability of you and your spouse ever being able to retire can be entirely dependent upon whether or not you have the right amount of life and disability insurance in force on the day it is needed - PERIOD.
And now, back to my story. Very recently, a very nice lady I know, a CPA referred me to someone she knew who was “in the market” for some disability insurance. The person she referred is a highly paid business consultant making about $500,000 per year. However, as it turns out, this individual, about age 44 is extremely overweight, obese really, and has been a type II diabetic since 2004 and is taking 3 shots per day. I already know for a fact the majority of the top insurance companies will flat out decline him. Those that offer anything, if at all will only allow a very basic, stripped down policy at a hugely increased cost. Ironically, he is being quite insistent and even a little arrogant, demanding to only be given quotes with the highest rated quality companies, with all the best definitions, and contract language and bells and whistles that would best protect him. Really??? Here’s the thing. He wasn’t always diabetic, we know that. And, maybe he wasn’t always so obese. The truth of the matter is he MISSED THE BOAT and he either doesn’t realize it, or he is in la la land and in total denial. He should have bought some disability insurance years ago when he was healthy and had the opportunity – but he didn’t and now he is paying the price of having to go through the rest of his life without it. Let’s do a little math and figure out what’s REALLY at stake here and what he gave up through his blunder by procrastinating, assuming he became totally disabled starting today. $500,000 per year x 21 years to age 65 = $10,500,000. Yes you read that correctly, that is TEN MILLION, FIVE HUNDRED THOUSAND DOLLARS! And that does not even include inflation or his anticipated growth rate of his business. Were he healthy, we could have insured all of this, and even added a “Future Insurability Option” rider (FIO for short) to protect his future health to grandfather it so he would be able to buy additional disability insurance in the future without having to re-prove his medical insurability.
The bottom line is, you cannot procrastinate at getting life or disability insurance, and wait till the 11th hour when your health is terrible, and then make demands of an insurance company to offer the best possible insurance policy, with the best possible price, language, bells, whistles, and features, without any true/real underwriting. This is just not how it works. This individual needs a reality check.
This story reminds me of one other and it’s hard for me to not just start laughing when I think of it. A man found my website and called me about wanting to get some disability insurance. He had a number of questions, and about every 10th word, he had to stop and adjust himself as though he were uncomfortable. Also, I kept hearing this clanging sound now and then, like metal on metal. I asked him what the sound was, and he said, “Oh…. You mean this?” as he clanged it again. “Yeah that… what is that?” He replied, oh it’s this triangle thing.” I said “what triangle thing?” “You know… one of those triangles. It’s hanging above my hospital bed. I’m trying to get comfortable but I just can’t seem to find a position that works. I went over the handlebars of my motorcycle and my pelvis and legs are all broke to crap with pins and stuff and strung up by these damn wires.” It was all I could do to maintain my professionalism and not start laughing. He went on to tell me he was really hoping I had some sort of “Hail Mary,” silver bullet disability insurance, and that he realized he was grasping for straws. He told me he was worried he was going to lose more than his house, probably his marriage too. His wife had been nagging him for over a year to get some disability insurance and he obviously didn’t do it and now she is just beside herself and won’t speak to him.
Let this be a lesson to everyone. You do NOT have all day! The best time to buy life and disability insurance is TODAY, before you need it.
If you are healthy and a realist and serious about your financial security, and you can think of nothing more important than your loved ones who depend on you and your income, I welcome your phone call and the opportunity to help you.
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