Life Insurance - Do I Even Need it?

Posted by: Stephanie Patacsil on Friday, June 12th 2020

The Covid Pandemic has people buying life insurance with urgency. Industry statistics suggest that some Life Insurance Company’s business is up 50% during the month of March. People are realizing how many of their benefits are tied to their employment, which is fragile right now, and their health is potentially at risk. Seeking resolve looks different for every family. This dilemma has disregard for a specific industry. Anyone can find themselves and their family in a compromising position if struck with sudden illness or unforeseen accident. Taking small steps to prepare your family and protect your assets can be life changing for those left behind. It might be important to remember; “It’s not for you. It’s for them.” Some family's situations are complex but often times we can consider a few questions that help us know if we need life insurance or not.

What is Life Insurance, and Why Does it Matter?

Life Insurance provides financial protection when a life is lost. It doesn’t lessen the heartache of the loss of loved ones, but it does soften the financial burden which sometimes includes, mortgages, car loans, credit cards, student loans, employment income etc. Some people have enough accumulated wealth to provide for their families, but often that is not the case. Think about your own situation. How would the loss of your life or a loved one impact your life? The life of children involved. Thinking about that and preparing for it can be significant. Let’s try and make it simple.

Protecting your Family - Simple Steps to Consider:

Often families I meet with ask, “How much protection do I need?” It’s such a great question and the answer is different for every family. I like to use the analogy of L.I.F.E. It breaks the process into smaller pieces and lets people think about what they need vs. what they want and is it budget friendly?

L = Liabilities

What things would my family be responsible for in the event of my death? These are typically financial commitments that those left behind have responsibility to satisfy. Mortgages, car payments, credit cards, student loans, caring for aging parents, educational expenses and healthcare costs are the ones that we see most often. Ask yourself, what would I need to get back on my feet?

I = Income

How would my family get along without my paycheck? How would my family get along without my spouse or significant others income?

This is different for everyone. Often, we suggest you think about the surviving family. Are they healthy? Can they work? Are there children to consider? Is there significant other income that can replace what’s lost. Is there a will or trust? Sometimes in the event of a stay-at-home spouse we will calculate multiple years of replacement income. What will your family need to regain a new normal?

F = Final Expenses

How will my family pay for my final expenses?

Customers often share that final expenses range from $10,000 to $25,000 in Indiana including the funeral home and final resting place. Have arrangements been made or is that something my family will need to manage? (Prepaid funerals are not uncommon and sometimes people will buy cemetery plots in advance too.) Preparing in advance protects your dignity and painful worry for your family.

E = Education

Is it important to consider the educational needs of my children or grandchildren?

Education is expensive and some families prefer private options. Thinking about education costs and preparing for them, if it’s important to you, can prove life changing. Some think about it from pre-school to high school and others only consider college costs.

Summing the total needs and sharing conversation with family, helps clarify the question we started with; Life Insurance – Do I Even Need It?


There are many types of Life Insurance products. Term, Permanent, Universal Life etc. It’s important to consult with an insurance professional to be certain that your choosing what’s affordable and appropriate for your needs. For most the goal is that their family is protected properly with A+ rated insurance. There are many online options, but phishing and scamming is common, and criminals are working fast and furious. Be sure to protect your personal information if you choose to shop online for life insurance options.

In Closing

Important decisions require forethought, sometimes tough conversations, and practicality. We see Go Fund Me pages daily on our social media feeds to pay for final expenses. Your planning today will assure your family that, while life without you will never be the same, you cared about them and their future.

If you have questions personally or for your employees, our Henriott Group insurance professionals are happy to meet with you and thoughtfully evaluate if we’re a good fit.

Want more information? Complete the form and we will get back with you!