Why You Need a Life Insurance Specialist

Who are the financial experts these days?

It’s really not a mystery.

Planners help you with planning.

Investment advisors help you with investing.

Insurance advisors help you with insurance.

And within each field you have your specialists. So life insurance advisors help you with life insurance.

Together, we form a team.  YOUR team.

Specialists Play a Special Role on Your Team

Every now and again I am prompted to remind you of the need to form a team of specialists to work on your finances. Recently, I came across a reply from Dave Ramsey to one of his many readers. The issue was the declination of the reader’s child for life insurance, due to hemophilia.

Here was Dave’s point:

“Unfortunately, you’re going to have a difficult time with this situation. It’s generally pretty hard, for obvious reasons, for hemophiliacs to get life insurance. I hope you understand that’s a statistical statement, not a spiritual statement.

You can always cover him as a child by building an emergency fund over and above the three to six months of expenses I normally recommend. A child rider is just a small policy to cover final expenses and things like that, so you could self-insure by saving up in the event — God forbid — of a worst-case scenario. An average funeral today costs around $7,000 to $10,000. You could always spend less, but if you guys have reasonable safeguards this isn’t a situation you should be facing. I mean, there are probably some things he just shouldn’t do from a common sense standpoint, right? But lots of folks have long, wonderful lives with that particular condition.

It might be that as research on the disease progresses and as he gets older, there’s a possibility that he could qualify. Think about this. If you even whispered a word like “cancer” anywhere near your name 25 years ago in the insurance business, you were done — no life insurance of any kind.” – Dave Ramsey writing for The Oklahoman

Dave does a superb job of identifying and addressing the multitude of issues that pop up in financial planning.

He also tries to help his readers feel positive about their situation.

I would like to add some words of encouragement as well.

In this particular case, I would like to supplement his advice with the knowledge I have as a life insurance specialist.

Because the fact of the matter is that hemophiliacs can get life insurance – and that includes juveniles.

And there are reasons to buy life insurance other than final expenses. Especially on juveniles.

The Special Needs of Juveniles for Life Insurance

Even people with serious medical conditions can get life insurance.

It is often priced quite reasonably.

This includes hemophilia, as well as diabetes, heart disease, and many other ailments.

Now, it is true that you can rely on an emergency fund in order to cover small expenses over a 6-12 month period, following the death of a loved one.

But if you really want to make a sound decision regarding life insurance on a child with hemophilia, it is important to remember the following:

  • Financial experts are often limited in their understanding of specific fields. They can provide sound advice about overall planning. However, they are also often limited in their understanding of specific products and marketplaces. When it comes to life insurance, they are often limited in their understanding of underwriting, and of the need to secure someone’s insurability.
  • Hemophiliacs can get life insurance. Underwriters look at elements such as coagulation factors, the frequency of episodes, the number of transfusions, etc., in assessing the risk presented. The amount of extra premium assessed to cover a higher risk can be surprisingly low given the right circumstances. It can be very affordable.
  • There are several reasons to buy life insurance on a child. It is not just a question of covering final expenses in case that tragedy occurs. Children with serious disease often grow into adulthood needing life insurance for personal and business reasons. It is much more expensive for them to purchase a policy when they are older. When their parents buy a policy on them as a child, they are able to lock in the lowest rate available.

And you always have to remember that they may unfortunately not qualify for coverage as an adult.

In that case they will be really grateful you had bought them the policy when they were a child.

Underwriting is a Field for Specialists

When discussing the potential role life insurance could play in a family’s financial planning, a life insurance expert should be consulted.

A family will benefit from the highly specialized understanding of underwriting.

They can then can make a truly informed decision about what options they may have.

What do you think? Do you have the right specialists on your financial team?

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