why i don't want to buy life insurance

Dolf Dunn Wealth Management, LLCDolf Dunn, CPA/PFS,CFP®,CPWA®,CDFA

Private Wealth Manager11330 Vanstory Drive

Suite 101Huntersville, NC 28078

704-897-0482dolf@dolfdunn.comwww.dolfdunn.com

Why I Don't Want to Buy Life Insurance

March 25, 2013

If you're like most people, it's not that you don'tappreciate the value of life insurance. In fact, manypeople believe they need more coverage. Youprobably wouldn't mind owning additional lifeinsurance. It's just that you don't want to buy it.

Thinking about buying life insurance, talking aboutbuying life insurance, discussing the reasons forbuying life insurance--all of this makes many peoplefeel uncomfortable. Here are just some of the reasonswhy you may be putting off buying the life insuranceyou know you need.

I don't have enough timeYou'll get around to buying life insurance, but nottoday. With all the things you've got to do, buying lifeinsurance can come off as a low priority--just onemore thing you ought to do. Plus, the whole idea ofdiscussing life insurance isn't a whole lot of fun. Whowouldn't rather take the dogs for a walk on the beach,attend a child's softball game, or spend thoseprecious few hours of free time in the evening visitingwith friends?

Nonetheless, buying life insurance is really animportant task that should be addressed. Lifeinsurance can help ensure that your family will haveenough money to meet their financial obligations inthe event of your death.

The subject is boring and morbidIf you really don't like to think about death, you're notalone. Death is an unpleasant subject, and lifeinsurance raises issues of our own mortality. Somepeople say that the very thought of starting the lifeinsurance buying process makes them feel stressedout. There's no great appeal to contemplating our ownmortality. It's a subject we'd rather ignore thanaddress. The result can be inertia or denial.

It doesn't have to be that way. People who do act ontheir life insurance needs tend to focus on the positiveaspects: the idea of meeting their responsibilities toprovide for, and care for, their loved ones. They thinkof it as contingency planning, protecting their familiesagainst the uncertainties of life. They also recognizethat life insurance is really about life and love, abouthelping to ensure a positive quality of life for theirspouse and children if they die prematurely.

I don't know where to startIf you don't have a clue about which type of policy isright for you, or how much life insurance you need,join the club. Few of us truly understand lifeinsurance: why we need it, what type of policy is best,how much we need, when and how benefits are paid,how benefits may be taxed, and more. That's okay.It's not your job to know everything about lifeinsurance. That's the job of an insurance professional.

Thinking you need to have all of the answers aboutwhich type of life insurance is best for you is sort oflike needing surgery and thinking you need to knowwhich type of scalpel to use. That's the surgeon's job.In the same respect, the right insurance professionalcan guide you through the process of selecting thepolicy that best suits your needs, budget, andobjectives, and can answer your questions.

Life insurance isn't a high prioritycompared with the other expenses IhaveFor many underinsured people, it's not so much thatthey don't want the life insurance they need; it's justdifficult to find the extra dollars to pay for it.

People who do act ontheir life insurance needstend to focus on thepositive aspects: the ideaof meeting theirresponsibilities toprovide for, and care for,their loved ones.

Page 1 of 2, see disclaimer on final page

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2013

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for anyindividual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performancereferenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

The tax information provided is not intended to be a substitute for specific individualized tax planning advice. We suggest that you consult with aqualified tax advisor.

Securities offered through LPL Financial, Member FINRA/SIPC

Buying life insurance you can't afford benefits no one.If it causes your family hardship or requires you tomake choices that seem incongruous ("Gee kids, I'dlove to take you on vacation, but our life insurancepremium is due"), you'll eventually discontinue thepolicy. Then you lose, and your family loses.

That's why it's important to purchase a policy thatmeets your needs and your budget. Fortunately, thereare many types of life insurance available. Theseinclude term life insurance policies and various typesof permanent (cash value) life insurance policies.Term policies provide life insurance protection for aspecific period of time. If you die during the coverageperiod, your beneficiary receives the policy's deathbenefit. If you live to the end of the term, the policysimply terminates, unless it automatically renews for anew period.

Permanent insurance policies offer protection for yourentire life, regardless of future health changes,provided you pay the premium to keep the policy inforce. As you pay your premiums, a portion of eachpayment goes toward building up the policy's cashvalue, which may be accessed through loans orwithdrawals. (Keep in mind, though, that loans andwithdrawals will reduce the cash value and the deathbenefit, and could cause the policy to lapse). Thecash value continues to grow--tax deferred--as longas the policy is in force.

Several different types of permanent life insuranceare available, including:

• Whole life insurance• Universal life insurance• Variable life• Variable universal life

Note: Variable life and variable universal lifeinsurance policies are offered by prospectus, whichyou can obtain from your financial professional or theinsurance company. The prospectus contains detailedinformation about investment objectives, risks,charges, and expenses. You should read theprospectus and consider this information carefullybefore purchasing a variable life or variable universallife insurance policy.

The bottom lineIt's easy to understand why people tend to put offpurchasing the life insurance they know they need.But look at it this way: buying life insurance is oneway you can help secure your family's financial future.And what could be better than knowing your lovedones will be protected, even if you're no longeraround to take care of them?

Five reasons to buy lifeinsurance

• To provide continuingincome for your familymembers

• To pay off debts youleave behind

• To pay final expensesand taxes

• To provide an estate foryour loved ones

• To leave money tocharity

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