May 2019 Volume LIV Number 3


Treloar & Heisel

September 2017 Volume LII Number 5

Is Buying Insurance an Act of Love?

Chances are you hadn’t thought about life insurance this way…

By Treloar & Heisel, Inc.

Part one in a series of articles about whole life insurance.

In our view, the purchase of life insurance is really an act of love. The truth is, you typically buy life insur- ance if you truly love somebody. You care deeply enough about a person or a cause that you would like to ensure their wellbeing even beyond your own lifetime. It’s a noble, thoughtful, and moving act.

Life insurance has a bad reputation, but that’s mostly because it’s misunderstood. To begin with, it’s often perceived as being too expensive. Clearly, it is possible to buy inex- pensive life insurance, called ‘term.’ Term insurance (as opposed to permanent insur- ance) is fairly affordable. The reason for its af- fordability is its limited applicability. Term life insurance only pays if the insured dies during a certain period of time, usually well before their life expectancy. A ten-year term policy, for example, only protects you for ten years. Should you die outside of that policy period, your beneficiary does not receive any benefits. A whole life policy, (the kind of permanent insurance we will be discussing in this article series), is however, considerably costlier – but comes with significant advantages over term insurance. Not the least of which is that it is permanent. As long as you pay the premium, you are covered. The policy only expires when you expire.

So the real question is: why would you buy expensive life insurance over cheap life insurance? It’s because you have a broad ho- rizon, and you want to see how many dimen- sions of this financial tool you can put to use within the context of your overall financial picture. Whole life insurance is like a Swiss Army knife of sorts. Sure, it’s life insurance, but it also comes with a certain features and guarantees that can serve you well – if you can afford to purchase it. Today we focus on the most important guarantee that whole life insurance offers, and that is the guarantee of time. Let’s explain what we mean by this.

By choosing to specialize in the dental professions, you have already selected a rich career path – both intellectually, and financially. Whether you are a middle-aged professional, or just starting out, all you need is time to achieve your various financial goals. What life insurance allows you to do is to complete those goals anyway, even if you don’t have the time to complete them by working, earning and accumulating assets. You may be lucky enough to live out a long life and achieve goals independently, or if you die early, you’ll still be able to provide everything you hoped for your family. During your working years, those goals may include educating your children, buying homes, and living a certain lifestyle. Once those goals are achieved, the goals change to retirement objectives. A properly structured whole life policy can significantly impact your income streams in retirement – in a good way! We’ll be discussing how you can leverage the multi-dimensionality of whole life insurance to enhance your retirement objectives in an upcoming article in this series.

You may be surprised about the many benefits you will discover once you really become a student of whole life insurance. It’s easy to dismiss whole life insurance precisely because it is more expensive, and frankly, more complex to understand. Plus, on an unpleasant topic such as death and dying, no one wants to dwell too long on the particu- lars.

Think about it not as death and dying, but as planning ahead for the people you love most. You’ll gain an entirely new perspective on whole life. You’ll feel good about spending money on insurance, because buying insur- ance is a selfless strategy. Some may even call it an act of love.

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