7 Killer Insurance Mistakes You're Probably Making

Years ago, a study by the National Association of Life Underwriters basically figured if just HALF of the adult population of the US purchased just HALF of the recommended amount of Life Insurance, that our social welfare systems could be reduced by well over half. On average, most people will be approached by a life insurance sales- person 7 times during their lifetime.

Imagine, if the study is accurate, if half the population bought half the insurance that had been recommended to them at least 7 times in their lifetime, the burden to taxpayers for welfare programs, including social security, could be relieved by at least half.

We assume that there is a moral imperative for people to take care of themselves and their families as best they can. However, since we can't trust people to make that personal choice, you would think that the government would require at least as much personal financial protection for a family as they require of us in the event of a lawsuit in an auto accident, in order to reduce it's costs.

If the government provided an incentive to buy life insurance, like tax breaks, credits, or taking payment out of Soc Sec deductions, or whatever works, it could provide a great incentive for people to take care of their own families, out of their own pockets. We could be offered our own choice of insurance companies (with a national "pool" of customers, there would be "rate wars" to a certain degree) and a government pool of insurance companies for shared risks. It wouldn't matter, as long as policies were individually issued and paid for by individuals to take care of their own families.

Yes, it's a little more complicated than that, but it's also not a lot more complicated that that either. The infrastructure for collection is already in place, the administration of benefits could become the administrative responsibility of insurance companies who already have the expertise in this field.

The bottom line is that this would help reduce government programs which reduces the cost to taxpayers, it would be individually administered according to need so it is not a "flat-rate" entitlement (over-paying some, under-paying others), it makes individuals responsible for themselves and their families and gives them a tax break, and it supports free enterprise (the insurance industry) that provides jobs and invests in America.

Steve Nagle of NY 2:09PM April 03, 2009