Let me first start by saying that I come from a viewpoint that we probably ought to legislate (control?) behavior less in our society. Less rules about how folks ought to live their lives, the better.
I believe we should own and be responsible for our actions and choices.
That said, there are some things I realize that are in place to help protect us and others from unforeseen events that are out of our control. This is one of the reasons that insurance serves an important purpose.
In most states (except for Virginia, Mississippi and New Hampshire), you are required to carry a minimum level of insurance on your vehicle. And, for good reason: one never knows when an accident could happen.
Those who defy the law and go without cost insurance companies over $2.5 billion per year. While these costs are picked up by the insurance providers, we all know that it ends up hitting us in the wallet / purse through higher premiums.
Until driver-less cars become the norm, accidents will happen. And, we'll need insurance.
The idea that car insurance is required by most states makes sense to me. Although, I'd love to see the costs of insuring be brought down (I think insurers make a killing off the insured), it is a valuable product for helping folks to avoid financial ruin in the event they have an incident.
Is Prince's death a wake-up call?
Last spring, I was startled to see news trickle out in my social media feeds that Prince had died. He wasn't very old – and his residency in Minnesota is something that many folks here take pride in. He definitely could have lived in a more glamorous and warmer climate – but had always remained loyal to the state.
After his death and more details were relayed about his life – I read reports that Prince didn't have a will. This was also quite a surprise to me. Even if Prince wasn't as keen on the importance of such matters, I would assume that his assistants or those helping him manage his wealth would have relayed to him the importance of having one in place. But, he didn't.
This is not to throw Prince under the bus. In fact, my wife and I are still in the process of finalizing our will after meeting with a lawyer. It's something that is easy to put aside and forget about, especially when you are younger.
Why life insurance is essential and should be mandatory
A case could be made that a will should be required. I also believe another strong case could also be made that many of us should be required to have life insurance.
Especially if you fall into one of these categories:
- You're deep in debt
- You have a family to support and/or
- You're the sole wage earner for family
Here's my reasons for each:
- Deep in debt. If you pass on and leave a mountain of debt behind with no means to pay for it – someone will have to eat that loss. And, while a lot of these debts are forgiven – some are not. It is a tragedy that those you leave behind may have to pick up your bill. You may not think that you're hurting anyone by leaving debt behind – but someone, somewhere is going to have to pay for that.
- Family to support / sole breadwinner. I don't need to say much about this – but if you have others relying on your paycheck and not a lot of savings / assets to help support them if you were to pass, you are showing disrespect. By getting a life insurance policy, you will be able to help bless them if you were to die unexpectedly.
A few years ago, an acquaintance of my wife was killed when he got caught in the crossfires of a disgruntled worker's rampage. He was just going about his day, and became the victim of a senseless tragedy.
One of the things that touched me is this man had a life insurance policy in place that helped those he left behind. To me, it was like a blessing and a final gift to those he loved because he never got the chance to say good-bye.
To me, these final pay-outs can help settle debts, provide financial stability or gifts to those left behind.
I believe, life insurance should be mandatory.
What do you think? Should we require that everyone take out a life insurance policy? Why / why not?