- If I am a single worker, should I purchase life insurance?
- January 27, 2013
“More and more people are at the fringe. The fringe is going to become the middle, not the middle class, but the middle of how people live,” said Kuriansky.
Whit Cornman, spokesman for the American Council of Life Insurers (ACLI), emphasizes that the future of the families of single wage earners could be particularly at risk if a plan has not been established to financially provide for those children.
Those who are able should consider taking advantage of coverage offered through their employer. For many on the lower end of the job spectrum, a benefit like life insurance is something they must seek on their own.
Term life offers an affordable option and depending on the age and health of the individual can be as little as $5 a month. Whole life costs more but also acts as a savings mechanism, which is another benefit not available to workers on the lower end of the job scale.
The cash value that builds in the policy if it is not redeemed can be used for college education, retirement and emergencies among other financial needs.
Katharine Carver, spokesperson for The Life Foundation, says according to the foundation’s surveys seven out of 10 households with children under 18 would suffer some significant financial stress if their wage earner dies. More than half of those surveyed believe they are underinsured.
The results were across all income levels, however those on the higher end of the spectrum may have the benefit of other savings to leave to their families.
“It’s the people who don’t have any money or significant savings who really should be taking a look at how to protect their families from financial ruin,” said Carver.
There is a growing concern in the industry that this may be a population group that either feels they cannot get life insurance or be able to afford it.
While part of the problem can be financial, it is also behavioral. Common excuses are often cited by consumers such as not knowing who to trust or how much insurance is needed.
“When people are faced with decisions and they don’t know what to do they tend to do nothing,” she says. And that can be dangerous.
That can be a dangerous move for single parents, who especially need to take steps to provide for their children’s futures including writing a will, establishing guardianship and trying to provide for their financial future.
“Generally speaking, the biggest driver for people having life insurance is you are responsible for the well-being of your children, financial or otherwise,” said Carver.Pages: 1 2
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