Since September is Life Insurance Awareness Month, we thought it would be fitting to share some information with you about life insurance. We understand it can be a bit complex, but we wanted to share with you its importance in your life.
According to TrustedChoice.com, 40% of American adults have no life insurance. And yet the same organization reported, “Nearly 9 in 10 consumers (86 percent) agree that most people need life insurance.”
So it seems to be agreed that we as humans need life insurance coverage, yet why do so many not have it? As with insurance in general, people have insurance to prepare for the worst and minimize the risk for something to impact another individual in the future.
Many people start to think about life insurance typically around the age of 30 or when they start to begin a family. However, there are reasons to begin determining a life insurance policy that is right for you prior to these times in your life. Two of those include student loans or other outstanding debt that may impact your family should something happen to you at a younger age. Life insurance is important at nearly every age.
One additional reason to understand the benefits of getting life insurance coverage at an early age is to understand that when you are young and healthy, lower premiums may be accessible to you as life insurance pricing is primarily dependent on age, health and overall risk factors that impact your life. Locking in these lower rates is one incentive to getting life insurance earlier in your life.
There are several types of life insurance coverage including term life and permanent life. Term life insurance is a policy that pays out in the event that you pass away during the timeframe set to your policy (10, 20 years, etc.). With term insurance, there is no investment or cash value included – it is strictly a death benefit that is paid out to the beneficiaries you have designated on your policy.
There are two types of permanent life insurance policies, which are whole and universal. In addition to death benefits, permanent policies are known to include an investment option that can also help to provide coverage for retirement expenses.
So, how long could your loved ones sustain their lifestyle if you weren’t there? 1 in 3 households would have immediate trouble paying living expenses if the primary wage earner died, according to the 2016 Insurance Barometer Study by Life Happens and LIMRA.
Again, we understand there are many components to life insurance for one to consider. We are here to help you protect your family with life insurance.
If you have any questions or would like a quote for a life insurance plan that fits with your needs and budget, please contact us today.