ARE YOU READY TO DIE?
By: Michael Aun, FIC, LUTCF, CSP, CPAE Speaker Hall of Fame
Past President – Central Florida NAIFA
I have been in the insurance business for almost five decades and one of the constants that I have noticed over the years is that everyone grieves differently.
Perfectly well-meaning people will go up to a widow or widower and tell them they should move on. The last time I checked, there was no time limit on grieving. I like to tell my clients it’s none of anybody’s business how you choose to grieve. And what they think is none of your business.
Ben Franklin once remarked “In this world, nothing can be said to be certain except death and taxes.” Having said that, another constant that never ceases to amaze me how poorly prepared most people are for death, both financially and mentally.
Given that there is a 100% chance that you’re not getting out of this world alive, you think people would be all set. In all my years in the life insurance business, it never ceases to amaze me about how poorly prepared most people are.
Clients often object to premiums of $500 per month. My answer: “If you can’t afford $500 per month now, where will your family find $5,000 per month when you’re dead?”
I hear some of the dumbest objections from clients. “She/he can remarry!” is a common one. My response: “Would you remarry her/him?”
Another favorite objection is “We do not need life insurance yet.” My answer, “It was not raining when Noah built the ark either.”
I like to suggest to clients that doing something today is going to cost you, but doing nothing today may, in fact, cost you and your family even more. Isn’t it better to do something by choice than to do nothing and take a chance?
The fact is most people have more insurance on their neighbor than they do themselves. If your neighbor slips and falls on your property, your homeowner’s insurance will pay the claim. Drop dead in your own home of natural causes and you get nothing.
People will often tell me that term insurance is the best way to go. Buy term and invest the rest, some say. The fact is that most people don’t invest the rest. Term insurance is the most profitable product an insurance company offers because only about 1% of all term insurance ends up being claimed. It’s just not in force when you need it.
Sometimes clients will say “I want to check out the competition.” Great! How many of the thousands of insurance companies do you intend to call? If you don’t get a quote from all of them, won’t you feel cheated?
What amazes me about most people is they have more insurance on the equipment in their home than they do on their life.
I like to suggest to my clients that: “What if you had a machine that produced $5,000 per month? You would certainly keep it maintained, wouldn’t you? You would want to keep it in top repair? You would want to insure it if it broke down, wouldn’t you? Well, you are a money machine. If you are disabled or if you die, wouldn’t you want your family to continue to have that income to live?”
My favorite objection is “The Lord will provide!” My answer is simple: “He did provide. He sent me to tell you that you need more life insurance.”
“My business partner will take care of our family.” Seriously? My answer: “Do you think your partner would want your spouse as his new partner? Worse yet, do you want your partner’s spouse to be your new partner? The best way to take care of your partner and your family is before you die, not after you die.”
Sometimes I hear: “I need to talk to my CPA or my attorney before I buy.” My answer: “Will your CPA or attorney provide for your family when you die?”
Sometimes people are simply in denial. “It won’t happen to me,” some say. The only thing I’m 100% sure of is that you will die.
Sometimes, I will ask a client: “When is the last time you totaled your car?” (Usually never). “Why do you have car insurance?
“When is the last time your home burned down?” (Usually never). “Do you have homeowner’s insurance?”
You carry these insurances because in case something does happen! Are you ready to die?
Michael Aun, FIC, LUTCF, CSP, CPAE Speaker Hall of Fame is Immediate Past President of the Central Florida Association of Insurance and Financial Advisors. You are welcome to visit http://www.aunline.com to access thousands of articles and his weekly column “Behind the Mike.”