What Can a “Cake Boss” Teach Us About Life Insurance?
Thursday, September 20, 2012 • 1:40pm
Master baker and reality TV star Buddy Valastro is best known for orchestrating confectionary masterpieces and having fun while doing it. But before his “Cake Boss” fame came a tough road that he had to travel.
Growing up, Buddy’s dream was to work alongside his father to make the family bakery a household name. But his father died of lung cancer at 54. To keep the business afloat, Buddy dropped out of high school and worked 12- to 18-hour days, six days a week. A video of his powerful story is posted at: www.sagefinancialpartners.com
Buddy’s situation was made more challenging by the fact that his father didn’t have life insurance. Buddy learned firsthand what happens when there is no life insurance protection.
One reason to buy life insurance is if you have a person or people in this world that you love very much. And that you would want to make sure that they never have to struggle and can continue to live in the lifestyle they deserve and you want them to.
What if you have already protected your loved ones with life insurance? I applaud you. Now, let me ask: when was the last time you reviewed your policy? Most life policies have not been reviewed since purchase. People file them away in a drawer or a safe and then forget about them. Here’s why it’s important to review your policies:
- Insurance rates have dropped dramatically in recent years: you may be able to get the same coverage at a lower rate -- or more coverage for the same rate.
- The coverage may no longer be appropriate due to a marriage, new child/grandchild, new home, new job, change in assets, etc.
- There may be a way to improve policy performance and build cash value.
- The policy provisions or guarantees may be obsolete.
- Your beneficiary designations are outdated.
That last one is a doozy, because 80 percent of beneficiary forms on life insurance policies are either blank, outdated or not properly filled in. This became an issue in a recent high profile court case, where a family was at odds over a life insurance payment. The deceased party’s will named one person and the life insurance beneficiary statement listed a different person. The Court ruled in favor of the beneficiary statement over the will – even though the will was written more recently.
This is why annual policy reviews are important. Life happens, and life changes. It’s certainly worth a few minutes to check that you’re still on track with your financial protection needs. Or as the Cake Boss says, “Always have a backup plan!”
Paul Partridge is co-founder of Sage Financial Partners. For a complimentary evaluation of your life insurance protection, contact Paul@SageFinancialPartners.com. Sage Financial Partners is a Registered Investment Advisory firm and member of FINRA and the Better Business Bureau. The information above is not intended to be and should not be considered investment or tax advice.
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