When to buy life insurance?

By Steven H. Kobrin, LUTCF
December 31, 2002
Copyright © Steven H. Kobrin, LUTCF.
All rights reserved.

We help many applicants for life insurance that are being treated for a medical condition. The list includes heart disease, cancer, diabetes, and high liver enzymes—and more.

It's tough having these conditions, and people tend to be optimistic over even the slightest measure of improvement. On one hand, I'm extremely glad for them. A positive attitude is crucial for our well-being, and the best medical experts will tell you that a positive frame of mind is essential for healing.

Financial Optimism

Many times this optimism carries over into our discussion about qualifying for coverage. "I've been making improvement!" people will tell me. "Last month my lab results were pretty good. Why don't we wait a few months for the results to get real good, and then I will apply. The rate will be lower!"

Very well could be.

However, I never counsel my clients to postpone this purchase. Never. To do so is to put yourself in a position in which—not only could the rate be higher than expected—but you may not qualify for coverage at all. Or—and here's the worst possibility—buying life insurance may have become a moot issue. Permanently.

Financial Realism

People have to remember that life insurance protects against the unexpected—and the uncontrollable.

Sure, we all do have a measure of control over our health and lifespan. Everybody should be exercising, and watching their diet, and maintaining a positive attitude. Those of us with medical conditions should be doing everything within our power to get better. And there is no doubt that these actions bring results: our actuaries will point to an immense body of data proving that those in better health live longer, and so get better rates.

But these efforts only help us manage the risk of death—not eliminate the risk of death. Immortality is not a by-product of proper living.

To see the point, take a look around you tomorrow when you drive home from work. How many fellow drivers are talking on cell phones, reading newspapers, or putting on makeup? How many are yelling at their children in the back seat—or are driving with dogs on their laps!? Throw in the number of people who are angry... or distracted... or drunk... and you will see how close danger lies.

Financial Bottom Line

The bottom line is that—even though our liver enzyme count or blood cholesterol may go down next week—that still won't reduce the odds of the drunk kid behind the wheel driving into our lane tomorrow. Certain risks are just beyond our control.

Financial Win-Win

One saving grace here is the Rate Appeal.

I always encourage my clients to buy the policy now, when it is affordable. If their condition unfortunately does not improve, at least they have the coverage in force. Whew!

And if they do get better, we can always appeal the rate and try to get a lower price. That is definitely a win-win proposition: get the coverage you need, while you strive to improve your condition.

In Summary

Life insurance protects your loved ones, your business, and your estate, against the sudden loss of something immensely valuable—you!

Because that loss can happen any time, the most sensible course of action is to get protection in place, immediately, to cover that loss and allow for the show to go on for all concerned. Life is full of heroes who have bought their life insurance with that in mind.