The Most Intelligent Financial Decision You Should Make in 2015:
Securing Your Life & Protecting Your Family’s Future
By Lisa Martin / Writer
Just like an annual health check-up or a yearly examination of your home’s air conditioning system, a thorough assessment of your insurance needs can be one of the smartest financial choices you make in 2015. With over 25 years of experience in the field, Bobby Davidson, an agent with New York Life Insurance Company, emphasizes that meeting with clients annually to reassess their needs is “one of the most crucial parts of my job.”
What’s the initial question you pose to clients?
Bobby Davidson: I would ask, “Do you have a will?” Many people don’t fully grasp how vital it is to have their affairs organized. Passing away without a will can end up costing your beneficiaries a significant amount of money and result in lengthy delays. Depending on your estate, a will can be simple to create. Additionally, it’s important to establish medical directives in case someone else needs to make end-of-life decisions on your behalf.
Describe what a comprehensive review entails and its significance.
BD: My review is essentially a dialogue; sometimes, it can be completed in just 30 minutes. In addition to discussing your estate planning, we cover your home and financial aspirations while reviewing your policies to ensure you’re neither over-insured nor under-insured, and that you’re maximizing your insurance investments.
What are some of the most frequent errors your clients make?
BD: Based on my experience, many people lack adequate coverage. A million dollars in life insurance (which could cost as little as $300 annually for someone young and healthy) may not stretch far when considering the expenses of your children’s college education. You also need to think about whether your spouse will need to find work or continue working following a death, and what their income will look like moving forward. I also encounter clients who neglect to update their wills as their families evolve.
How do you assist people in determining their life insurance needs?
BD: Consider this: if the primary earner were to pass away, how much money would be required for the spouse to sustain the family’s lifestyle? Most people have around six months’ worth of salary saved, but if you aren’t a strong saver, life insurance can help cover that gap.
What do you say to someone who believes their employer-provided insurance is sufficient?
BD: What happens if that employer faces difficulties? Or if the individual loses their job? Typically, my clients possess less than $100,000 in employer-sponsored insurance. Often, families should carry more.
You’ve mentioned that many of your clients have turned into lifelong friends. What insights have you gained from them?
BD: Life can be incredibly unpredictable, ranging from someone suddenly acquiring considerable wealth to facing unforeseen tragedies. One client in his mid-30s approached me when he noticed a small spot on his lung. I informed him we could assist with insurance, but he chose not to proceed. Six weeks later, he was diagnosed with lung cancer and became uninsurable. He had a wife and two young children. If you are financially responsible, you must have life insurance, no exceptions.
For a FREE 360 Review, contact Davidson Insurance Services at 972.980.4884.
