Savings protectionStudies show about one half of adult Americans have life insurance. Yet many of those who do, the purpose is to cover the costs associated with the end of life.

Meanwhile, the other half feel it is too expensive, or they have purchased enough to meet their needs.

One industry veteran wants to change the conversation about life insurance.

“We in the South have grown up buying so-called ‘burial’ insurance for the sole purpose of putting a loved one in the ground,” says Harvey Griggs, an AmeriLife agent in Roanoke, VA.

“When I talk to younger people who think they do not need life insurance, I tell them to speak with their parents and/or their grandparents. Find out what they did – or wished they had done.”

During his years as an agent, Harvey has found that regardless of age, most individuals do not understand life insurance can cover more than funeral and cremation costs.

“They are amazed when they hear a policy has value beyond those expenses,” he says.

Life insurance as income protection

Harvey’s prospective clients include young couples, who tend to be quite skeptical. With them, he needs to put things in perspective.

“If someone says they say they do not need life insurance, I tell them they are right,” Harvey says.

“They need income protection.”

He follows that statement with a question: what happens if the primary or only wage earner in your home becomes ill or injured, or is no longer there?

Then he points out the surviving spouse or partner will need money to keep the mortgage current, buy groceries, and cover other expenses.

Early saving has its benefits

Young adults often feel they do not need life insurance, or they have plenty of time to get it later: “Most everybody is trying to save some money,” Harvey says.

While life policies are generally not investment vehicles, “getting in the habit of paying the insurance premium every month will eventually create a policy with cash value that can be tapped for emergencies and other needs,” he notes.

It is a message that recently hit close to home.

“Recently, my daughter was scrambling for money,” Harvey says.

“I told her to check the cash value on her life policy, and Bam!

“It was money she did not know she had.”

Insurance products may differ

Permanent life insurance has cash value because it provides coverage for the life of the policyholder. This type of policy usually has higher premiums than term insurance, which covers the policyholder for a specific period of time (the term). Learn more

As the Investopedia website notes, cash value policies generally require a fixed premium payment. Part of it goes toward the cost of the life insurance, and the rest goes into a cash value account, which may earn a modest interest rate.

Taxes are deferred while the funds accumulate.

If you are uncertain which type of life insurance is right for you, and you do not have a family member or friend in the business as a guide, do not worry. Your local AmeriLife agent can help.

Connect with an agent. 

Rethinking Life Insurance as Income Protection

Savings protectionStudies show about one half of adult Americans have life insurance. Yet many of those who do, the purpose is to cover the costs associated with the end of life.

Meanwhile, the other half feel it is too expensive, or they have purchased enough to meet their needs.

One industry veteran wants to change the conversation about life insurance.

“We in the South have grown up buying so-called ‘burial’ insurance for the sole purpose of putting a loved one in the ground,” says Harvey Griggs, an AmeriLife agent in Roanoke, VA.

“When I talk to younger people who think they do not need life insurance, I tell them to speak with their parents and/or their grandparents. Find out what they did – or wished they had done.”

During his years as an agent, Harvey has found that regardless of age, most individuals do not understand life insurance can cover more than funeral and cremation costs.

“They are amazed when they hear a policy has value beyond those expenses,” he says.

Life insurance as income protection

Harvey’s prospective clients include young couples, who tend to be quite skeptical. With them, he needs to put things in perspective.

“If someone says they say they do not need life insurance, I tell them they are right,” Harvey says.

“They need income protection.”

He follows that statement with a question: what happens if the primary or only wage earner in your home becomes ill or injured, or is no longer there?

Then he points out the surviving spouse or partner will need money to keep the mortgage current, buy groceries, and cover other expenses.

Early saving has its benefits

Young adults often feel they do not need life insurance, or they have plenty of time to get it later: “Most everybody is trying to save some money,” Harvey says.

While life policies are generally not investment vehicles, “getting in the habit of paying the insurance premium every month will eventually create a policy with cash value that can be tapped for emergencies and other needs,” he notes.

It is a message that recently hit close to home.

“Recently, my daughter was scrambling for money,” Harvey says.

“I told her to check the cash value on her life policy, and Bam!

“It was money she did not know she had.”

Insurance products may differ

Permanent life insurance has cash value because it provides coverage for the life of the policyholder. This type of policy usually has higher premiums than term insurance, which covers the policyholder for a specific period of time (the term). Learn more

As the Investopedia website notes, cash value policies generally require a fixed premium payment. Part of it goes toward the cost of the life insurance, and the rest goes into a cash value account, which may earn a modest interest rate.

Taxes are deferred while the funds accumulate.

If you are uncertain which type of life insurance is right for you, and you do not have a family member or friend in the business as a guide, do not worry. Your local AmeriLife agent can help.

Connect with an agent. 

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