I had an appointment yesterday evening with a client here in Cottonwood, Arizona, and the client handed me his credit card while pointing at a plan that he wanted. I tried returning the card to him, telling him that we need to look at his income and expenses again before deciding something that works for him.
The man was in a rough situation. He was a single guy with $830 of monthly income. No one helped him with his income and his outgoing expenses included rent. His total expenses were over $700 when he didn’t even include his food expenses in it. He wasn’t looking too great. I could tell that he was a little malnourished. In short, it was an awful situation.
So, we were looking at some affordable options for him. Our aim was to find something so affordable that he would only have to pay around 30 dollars a month for his life insurance policy. He was really concerned about his kids and wanted to make sure that he was looking at a final expense policy.
We were looking at a basic cremation policy for him with a small financial gift built-in as well so that it covers the cost of cremation and service and the family could get a little bit on top of that. We really just talked through it and he agreed that even though this policy was important, it’s was something that wasn’t a good fit for him financially. I told him to call me back if things changed for him, and I would do everything in my power to help him get an affordable life insurance policy.
However, as much as he wanted it, it wasn’t affordable now. So, sometimes that just happens and fortunately, that is not uncommon. There are rough situations where, in most cases, we’re looking at a household income of at least a couple grand. There’s some wiggle room in there.
The point of this story was that if your agent is not asking you financial questions, then there’s a problem— your agent is just looking for a sale. So make sure that you are a part of the conversation and understand your financial situation before you go on and finalize any insurance plan. You should know that we’re all adults here and should think rationally about our finances.
Your financial condition and how much you can really afford should be part of the conversation. And that’s my tip of the day. Once again, this is Chad McMahon from ‘Protect with Insurance’.