It’s scary, right? You’ll fall if you walk across a rope. Risk is everything, right? There is a chance you might lose your balance and land on the ground. It’s not a very nice image. To ensure your safety, you would want the net to be there. You want to be sure that everything is okay if you fall from the sky.
Makes sense doesn’t it? Another question. What would your family get as a financial safety-net if you or your spouse died? What would happen to their financial security? How would they pay the bills? What would your family do to change their lifestyle?
A “2014 Insurance Barometer Study. Life Happens. and LIMRA.” 31% of participants in the study said they would feel the financial consequences of the death of their primary wage earner within one month. A majority of people between the ages of 25 and 44 expressed concern about leaving their dependents in difficult financial situations if they died prematurely. A third of respondents wish that their partner or spouse had life insurance or more.
We now need to ask why? What is the reason that families across America don’t have basic safety nets? LIMRA and Life Happens studied why families are putting off purchasing life insurance. These reasons can be broken down into two groups: cost, priorities, and procrastination. Let’s start with cost.
The study revealed:
- Americans underestimate the cost of insurance for life by 80%
- People without life insurance underestimate the cost of coverage more than 3x, and by more that 2x for those who have it.
- Under 25-year-olds believe that the true cost of life insurance is nearly 10x.
Families who are looking into insurance should consider cost. However, even though they know that insurance is necessary, many don’t get to discuss their insurance needs with an agent. Before you decide that insurance is not for you, it’s worth speaking with an agent about your life. Isn’t life insurance worth looking into if you think about the financial security it would bring your family.
PROCRASTINATION AND PRIORITIES
There are many distractions in life. It is easy to put off what we need to do today. We often fail to realize the long-term consequences of not getting it done sooner. Insurance is often overlooked in favor of other priorities. According to the study:
- 59% don’t have life insurance, or any more, because they have “other priorities”
- 52% place expenses like cable or cell phone before purchasing life insurance
- 30% of people have not purchased life insurance, or any more of it, simply because they “haven’t got around to it”.
THE BIG PICTURE
Who gets the benefits of life insurance proceeds? Life insurance is not only for the deceased, but also for the living. Life insurance can provide financial support when it is most needed – such as at the end of a wage earner’s life. Life insurance’s death benefit can help your family remain financially sound. This allows your family to remain in their home and continue attending school. It also provides money for college expenses. These are all things that you would have provided for family members if you had lived.
Are you looking for life insurance? That is a question that only you can answer.
WHAT’S THE NECESSARY STEP?
Find an insurance professional first. Talk to them about the financial needs of your family in the event you die. You should only work with an insurance agent you trust. After a conversation, if you feel uneasy in your gut, it is time to move on to the next person. There are many insurance professionals near you.
It is important to take action. It can be expensive to wait before purchasing life insurance. Changes in your health can lead to higher premiums or even no coverage. We don’t know when death will happen so if you die without life insurance, it could put your loved ones in serious financial trouble. You can avoid these critical financial issues by purchasing adequate life insurance.
THE BOTTOM LINE
A family’s financial picture is impacted by life insurance. Although there are some costs associated with life insurance, it can provide financial security and peace of mind for your family in the event that life doesn’t go according to plan.
An insurance professional can help determine if you have a life insurance need. They can help you find the right plan for your situation. You can decide whether you want life insurance or not. This important financial decision is yours.
Barry S. Taylor, a Financial Professional at Integrated Planning Solutions. Realizing the need for financial education, and a genuine desire help families improve their financial health. Barry is passionate about helping people find a better approach to their finances.
We can provide affordable protection for families to help them build a financial safety network through Integrated Planning Solutions.