7 Reasons Clients Need Their Own, Individual Life Insurance

2. Let’s build equity.

Most homeowners have a mortgage.

A portion of your monthly payment goes towards carrying costs like mortgage interest, but another portion goes towards paying down the loan, building up your equity.

When you buy whole life insurance, you're buying protection, but you're also building cash value over time.

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3. Eventually you own it.

When you pay your mortgage over time, eventually you make the last payment, and the home is yours.

You've satisfied the loan and the monthly payments stop. With whole life insurance, you're building equity and that is earning interest for you too.

After many years, your accumulated payments and interest should be equal to the face value (death benefit) of the policy.

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4. You can borrow against it.

Historically, real estate has increased in value over time.

As you pay down your mortgage, you 're increasing your equity.

If your property appreciates, you are gaining additional equity.

This is often accessed through a home equity line of credit, or HELOC.

As your equity in your whole life insurance policy increases, most plans allow you to borrow against it if you choose.

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5. Life insurance gets more expensive as you get older.

Your company-provided life insurance is a form of term insurance.

It is not portable.

If you leave the company and set up in business on your own, you'll need to buy your own insurance.

If you stick with term insurance, the premiums will be higher because you're older.

Insurance companies set their prices based on life expectancy.

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6. Sometimes people become uninsurable.

Everyone dies from something.

Often, it's an illness contracted later in life.

Illness, not injury, is the leading cause of death worldwide.

Insurance either becomes prohibitively expensive or unavailable.

If you own whole life insurance, bought when you were young and healthy, it stays in force as long as you pay your premiums.

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7. How many jobs will you have?

Years ago, people joined a company and stayed there until they retired.

Life is different today.

According to the Bureau of Labor Statistics, baby boomers held an average of 12.4 jobs, when measured between ages 18 through 64.

Will all of those jobs offer life insurance as a benefit?

Will the coverage be the same from employer to employer?

Putting life insurance out of mind because “I get it through work” might sound like a good cost-saving measure, but it's shortsighted. You know the reasons why.

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