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The Alemian File: Not Everyone Needs Life Insurance

By David Alemian

Not everyone needs life insurance, but just like any other type of insurance, if you do need it, you should get it.  One of the biggest reasons people need life insurance is to protect others, usually, loved ones.  In other words, if someone else were to suffer a financial loss as the result of your death, then you need life insurance.  A classic example is if the breadwinner of the household dies, the resulting loss of income would leave the surviving family members in serious financial trouble.  Obviously, in a case like this, the breadwinner needs to carry life insurance.  Not doing so, is to put all the other family members at serious financial risk.  It brings to mind a time early in my career as a life insurance agent.  I sat down with a woman in her mid-50s, in her kitchen, along with her two children 12 and 14.  I will always remember what this struggling mother of two said to me. She started out by saying “I’m sorry that you had to come here, this is not exactly the nicest part of town.” She went on to say “We used to live in a much nicer place, but my husband died, he didn’t have life insurance and we lost everything.”  I expressed my condolences.  She bitterly replied with “He wasn’t a good husband, he didn’t have any life insurance and he left us to fend for ourselves.  I need to get life insurance, because I don’t want to do to my children what my husband did to me.” At that moment, I learned how important life insurance really is.

Imagine the emotional stress of that family who just lost a loved one… now add enormous financial stress to the picture because the breadwinner’s income has suddenly stopped.  Instantly, there wasn’t enough money pay the mortgage, utility bills, or put food on the table.  If that isn’t enough, let’s not forget that funeral costs can easily run $7,000 or more.  What about college for the children, and a retirement for her?  It’s a tragedy that occurs countless times, every day across America.  What makes it even more tragic, is that it can easily be avoided with a simple life insurance policy.

Now imagine a different picture, where there are no financial worries because there was enough life insurance in place to cover the loss of income.  In this picture, the family comes together to mourn and give each other strength, while sharing fond memories of a loved one.

The two pictures are completely different.  The first picture is of a family financially devastated.   The second picture is of a family coming together to comfort one another, and mourn the loss of their loved one.  The difference between the two pictures can be summed up in two words… life insurance.

Most people don’t realize how affordable life insurance really is.  The fact is we’re living longer and life insurance rates have come down.  If you’re curious, try this next thing for fun.  First take a wild guess as to how much life insurance would cost for yourself, and then use this Life Insurance Quote page see how much it really is.  I’ll give you a hint, if you’re like most people, the actual quote was lower than your guess.

Other examples include business owners with debts or business partners, because life insurance can protect the business, the business partners, and the business owner’s family.  It can even protect the business from the loss of a key employee.

Many people also use life insurance to supplement their retirement income with permanent cash value life insurance policies.  The policies build a cash value that enable the policy owner to draw an income stream during their retirement years.

The important take-away here is that you never know when something is going to happen.  There are literally hundreds of thousands of unexpected deaths every year.   Accidents, heart attacks, strokes, or cancer are just the tip of the iceberg.  The one thing they all have in common… the person had no idea when they got out of bed in the morning, that they would be diagnosed with a terminal illness or even die that day.  As you read this article, there are countless people who will die unexpectedly and not one of them knows that today is their last day.  Life insurance is not about the person who needs life insurance, it’s all about what happens to the loved ones left behind.

If you have questions, send an email to David@TheAlemianFile.com. Help keep yourself informed on financial issues… checkout and Like “The Alemian File” on Facebook.


About David Alemian

Successfully creating affordable retirement plans guaranteed to last a lifetime is a unique, specialty skill. It’s a challenging arena but respected writer David Alemian makes it look easy. Alemian is a leading retirement expert and nationally recognized authority whose expertise is shared via video columns, numerous journals, and talk-shows.

His national recognition results from both revolutionizing and revitalizing how organizations and individuals like you and me plan and save for retirement. Alemian is considered “The Go-To Guy” for creating and implementing absolutely irresistible, lifetime retirement pension programs.

Formerly the host of “It’s About Money” Radio Show, Alemian has also produced and is featured in over 200 financial education videos. Additional content can be found in many well-respected, publications including: MD Magazine, Physician’s Money Digest, Physicians Practice, Journal of Clinical Oncology, Consultant Live, Psychiatric Times, Cancer Network, OB/GYN.net, and The Healthcare Executives Network.


This article reflects the thoughts and opinions of the author and is being provided for educational and informational purposes only. It should not be considered financial or tax advice. Please consult your financial or tax advisor about your situation.