It’s a subject that no one really wants to think about, but if you have loved ones that depend on you financially, you need to address what plans you have in place in case something happens to you.
Life insurance is the answer to a very difficult question: How will my family manage financially if I pass away? If a tragedy were to occur, the proceeds from a life insurance policy can cover funeral costs, pay off outstanding debt, continue the family business, provide for your children’s education, and even protect your spouse’s retirement.
In a recent study, 80% of Americans agreed that life insurance was something that most people needed, according to the “Life happens and LIMRA Insurance Barometer Study, 2014”. Surprisingly though, a separate study from LIMRA indicated that only 44% of Americans owned an individually purchased policy. When you purchase life insurance, you are ensuring that your loved ones will be taken care of financially in the event of your passing.
There are a wide variety of life insurance policies available to meet your needs, as well as your budget. If you already have life insurance, when was the last time that you took the time to review your policy, as well as your coverage needs? Have you had children, purchased a bigger home, or had a substantial change in income? All of these things would change the amount of coverage you need, and making sure that you have the most competitive policy available is crucial as well.
The “LIMRA and Life Foundation 2013 Insurance Barometer Study” found that 86% of people indicate that they haven’t bought life insurance because it’s too expensive, yet overestimate its true cost by more than 2x! With a variety of new insurance plans available to meet a wide range of needs, and the fact that people are living longer, the cost of insurance is typically substantially lower than one would expect, and that doesn’t just apply to young people either.
If you’re in retirement, and looking to leverage and protect your estate from potential estate taxes, new permanent life insurance policies can provide a substantial death benefit, even if you’re in your 60’s and 70’s. In addition, many new policies offer access to cash in the event of chronic, critical, or terminal illness, which can provide a substantial benefit at a low cost should you ever need it.