People often question whether or not they need life insurance. If someone depends on you financially, chances are you do. However, 4 in 10 Americans don’t have life insurance, and of those that do, nearly a third only have a basic group policy.
Why aren’t more people buying coverage?
One of the main reasons is cost implications. Americans overestimate the cost of life insurance. According to a study by LIMRA:
- 83% of consumers say they don’t purchase more life insurance because it’s too expensive.
- Consumers believe life insurance costs nearly 3 times the actual price.
- Most Americans believe a 20-year, $250,000 level term life policy for a healthy 30-year-old costs $400 annually.
- What it would actually cost: $150.
Of the 60% of adults who own some kind of insurance policy, whether it is through work or a private insurer, 1 in 5 people admit they don’t carry quite enough. While workplace policies offer some amount of coverage, they are often minimal. Many people simply don’t know how much insurance they need to support their families in the event of a tragedy.
Many adults don’t believe they need any life insurance. Here are a few scenarios to help you understand how life insurance might apply to your situation.
If you’re married:
Even with the surviving spouse’s income, would that be enough to pay off credit card debt, car loans and cover month rent/mortgage and utility bills? If you’re planning on having children, now’s the time to buy. Some companies won’t issue policies to pregnant women.
If you have kids:
If you or your spouse suddenly died, could your family uphold all of their loving expenses on one income? Life insurance ensures that plans for the future, like college, can still be achieved if there is a loss. Even if you’re children are grown, would your spouse be able to maintain the lifestyle you worked so hard for if you died?
If you’re a single parent:
Nearly 4 in 10 single parents don’t have life insurance. As a single parent and so much responsibility, it’s important to make sure your children’s future is secure.
If you’re single:
Single people don’t usually require life insurance because no one is relying on you financially. However, a small policy might be beneficial to provide relief to relatives who may have to cover funeral costs.
Just like any insurance policy, you don’t need it until you need it. Another expense can seem like a burden but you’ll have peace of mind knowing your loved ones will be taken care of after you’re gone. Click here for a free Life Insurance quote, and if you have any questions, please contact us.