You’ve probably heard it before (and if you haven’t, you’re about to):
Life insurance isn’t something you buy for yourself. It’s something you buy for the people you love.
Even though you pay for it, and your name is on the policy, the benefits don’t actually kick in until…well, you know.
So since life insurance is ultimately for your family, how should you talk to them about it?
It’s sort of a gift, but definitely not one you want to keep secret. (PSA: always tell your beneficiary about your life insurance policy…otherwise, they may never know it exists and never claim the benefit.)
It’s sort of like a subscription, except instead of getting magazines, meals, etc., you get the peace of mind that comes with knowing your family’s finances may be better protected.
Here’s the big question, though: how involved should you let your family be involved in the decision-making process when you’re considering life insurance?
Talking to your partner about life insurance is important, and we have a separate blog post devoted to that topic here. This time, though we’ll focus more on your other family members: children (and potentially their spouses), grandchildren (depending on their age), or anyone else might be affected by your plans.
Talking about your financial legacy with your adult children can be tricky, and the life insurance component of that conversation is no exception. A few things could happen if you choose to let your family members weigh in before you purchase life insurance, including (but certainly not limited to)…
- They may be on exactly the same page about life insurance as you are, which makes things pretty easy. In that scenario, it’s probably more about sharing information and offering affirmations than anything else.
- They may all have dramatically different ideas about how much and what type of coverage you need, who the beneficiaries should be, etc. And those ideas may not necessarily reflect what you had in mind. If you feel too much tension is building, you may want to consider consulting a financial advisor. Sometimes a neutral party and a professional opinion can speed up your journey to peaceful resolution.
- They may even try to talk you out of it, because let’s be honest, being the beneficiary of a life insurance policy can bring up some feelings of guilt in addition to gratitude. If this happens, it may be a good idea to gently but firmly remind your family that this is something you want to do because you love them.
Ultimately, the approach you take to talking about life insurance with your loved ones is up to you. You know your family dynamic better than anyone else, and in some cases, it truly may be best to make your own decisions and talk about them after the fact.
However, if you feel your family may offer valuable insight and perspective about life insurance, there’s nothing wrong with involving them in your decision to some degree. They may suggest options you hadn’t considered, or help out with the application process (although at Final Wishes Covered, we try to keep that pretty simple). If nothing else, including your adult kids in the process may set a good example and be a useful learning experience for them.
Essentially, involve your family as much as you want to/feel comfortable about, but stay in control of the conversation.
In the meantime…
If you’re not sure how much coverage you really need at the point in life where you are, final expense life insurance could be a good place to start, since the policies are smaller than traditional life insurance and therefore typically come with lower premiums.
Policies like the ones we offer are designed to help cover the cost of your funeral and other end-of-life expenses. No matter what the rest of your financial strategy may be, making sure any immediate financial burdens may be alleviated during an emotionally stressful time is a pretty nice thing to do for your family.
We’d love to help you get started today…get a no-obligation quote (it only takes a minute), or if you’re still in the mood to talk after that family meeting, give us a call at 888-432-7066!
If you’re also interested in looking into a traditional term life insurance policy, check out our sister brand, Our Life Covered!