How do I know how much life insurance I need?
Producers buy as much life insurance as they can get.
That’s a pretty bold statement, is it?
Producers Vs Consumers.
Consumers consume more than they produce.
Producers produce more than they consume.
However, producers are some of your biggest consumers, but yet, they produce more than they consume.
Why do producers buy as much life insurance as they can get qualified & be able to write a check for?
Because they understand the law of transfer. Something that they are not uniquely talented to do causes an inefficiency in their business and/or life. Producers want to transfer the risk of this inefficiency to someone more capable of handling that risk.
For example: A producer might say “I’m not uniquely talented in this area, it’s not an expertise of mine, so I’m going to hire and pay a life insurance company or an auto insurance company, homeowners insurance company, liability umbrella insurance company, disability insurance company, and certainly life insurance companies to manage that risk for me. It frees me up in my area of expertise to continue to produce at the highest level in my area of expertise.”
How much life insurance do you need or want? As much as you can get.
Now, with that being said, we want to strategically coordinate that with term and whole life insurance for your vault in a way that works with your personal finances, with your current cash flow.
We want you to have the “max”. There’s security in maximization.
You cannot over-insure yourself or something else. It’s not possible.
Have you heard that before? “I’m over-insured.” That is NOT possible. You cannot be over-insured.
Take, for example, your home. If your home’s valued at $500,000, do you think an auto and homeowner’s insurance company is going to insure your home for a million dollars? No, they’re going to do an assessment. They’re going to have an appraiser come out. They’re going to take pictures and measurements. You have to prove that your home is worth a half-million dollars for them to even consider insuring it for that.
If everybody was getting a million-dollar policy on their ½ million-dollar house, we’d see a lot more homes being burned down.
The pure definition of insurance is the indemnification of a loss. What was lost in the event that X occurred? If you could buy insurance after the event happened and still be covered, how much would you own?
If you knew that you’re going to die tomorrow and you could buy as much life insurance as they’d offered you today, would you buy it? How much of it would you buy? You’d buy the maximum amount, so there’s security, peace of mind for you in having the maximum amount and coordinated with your personal finances in your life because we can leverage that.
This is knowing Vs hoping.
Knowing that if X occurred, I can’t do any better than what I have. When you have that in your life, then you can continue to produce at the highest level, you can continue to enjoy and be present more than ever before the experiences that you’re creating and having in your life.
So how much life insurance do you want? As much as you can get. That’s the answer when coordinated with all your other money decisions together.
If you haven’t had an update on your current insurances and where you could be, take the assessment, get on my schedule, and let’s do that review so you’re empowered with everything that you have going on in your finances.