Are you married? Do you have kids? Have you thought about what would happen to your family if something was to happen to you? Truck driving is considered by Forbes Magazine to be the 8th most dangerous job in America. About 41% of all fatal workplace injuries are transportation incidents, such as car accidents, overturned vehicles, and plane crashes. Almost 60% of those fatal transportation-related incidents happened on highways and involved motorized land vehicles. Of course, we don’t want to focus on the scary realities of being a truck driver.
No matter what your job is, if you have a family that you help support, it is a good idea to purchase life insurance. Life insurance is not a fun topic to discuss because no one wants to think about death and leaving your loved ones behind. But, life insurance is something that needs to be discussed with your family as it can make or break their future without you. Often employers will offer life insurance as part of their benefits packages, but as small business owners and independent drivers, it is something that you need to purchase on your own.
Do You Need It or Not?
The first step you should take is to determine if you need life insurance. Not everyone does. If you are married with children that depend on you then it is a good idea to purchase a plan. The main purpose of life insurance is to replace an economic loss. No one wants to think about their death as a financial loss, but if you remove all the emotional factors, you would probably agree that you would not want your family to struggle financially after your death.
How Much Do You Need?
Once you have determined that you need life insurance, you need to calculate lost income. Let’s look at an example. You have a wife and two kids at home. Both of you each make $40,000 a year. Since you have a house and college expenses for the kids, if one of you were to die, you would need at least $40,000 a year to replace that economic loss. Calculations can get complicated with only one spouse who works or one spouse who works part-time. A financial planner or life insurance agent can help you determine your economic loss and what you would need to replace it.
What Plan Do I Need?
There are two basic types of life insurance planes: whole life and term insurance. Whole life plans are a type of permanent insurance that combines life coverage with an investment fund. The plan will pay a stated, fixed amount upon your death. Part of the premium that you pay goes toward building cash value in investments made by the insurance company. Your monthly premium amount usually doesn’t change throughout the life of the policy. Term life insurance plans are a little different. You’re buying a coverage plan that lasts a set period of time, such as 30 years. Term life insurance is super cheap when you’re young, but as you get older, your premiums will start to climb higher too. There are a couple of other options as well. To compare the difference between plans, check out Genworth’s life insurance types chart. So what type of plan do you need? Well, it’s hard to tell because everyone’s family and financial situation is different. It’s best to talk with a financial planner or insurance agent to determine which type of plan best meets your needs.
Where Do I Buy a Plan?
You can purchase life insurance through a local agent or online. If you have a lot of questions and prefer the personal touch then going with a local agent is probably your best bet. Insurance agents make money from commissions on products they sell, including life insurance. Choose an agent that offers multiple companies. Having the choice of multiple companies will often provide you with competitive rates and is especially important if you have health issues. Some companies won’t touch cancer patients or survivors while others might. And don’t forget you can negotiate plans a little.
As truck drivers you have access to special offers, discounts, and resources through the trucking industry. The offers might not be the best for you, but it is worth the time to check them out.
Here’s a list of companies that offer products to truckers:
No one likes to think about their death. It’s an emotional topic to discuss with family members, but it is an important one. Life insurance might not be for everyone, but if you have family members that are dependent on you financially then purchasing a life insurance plan is the right thing to do for your family’s future security.