According to a LIFE Foundation survey, 93 percent of Americans believe it is important for most people to have life insurance, but nearly half of those polled said they do not have enough coverage.
Let’s face it: buying life insurance isn’t exactly a “fun” experience. But, in reality, it is required. Despite the low rates, a surprising number of Americans do not have a life insurance policy. Even if they are single, most Americans would benefit from one.
Many people believe that premature death is unpleasant to contemplate and unlikely to occur. However, obtaining a life insurance policy when you are young and healthy can provide you with better rates and, ultimately, greater coverage.
Furthermore, the time and effort required to find information about life insurance appear to deter people from doing so. There are life insurance calculators available to help you assess your needs, which can save you time. Some people avoid buying life insurance because they are embarrassed about their medical conditions. However, there are policies available that do not require an initial physical exam (though the cost may be higher).
Some people regard insurance premiums as losses and fail to see the long-term benefits of a life insurance policy. Another reason is that people are preoccupied with home, auto, and health insurance and believe they cannot afford life insurance.
The irony is that more people are approaching retirement age and will require financial assistance. According to the Associated Press, more than 10,000 Baby Boomers will turn 65 every day. This pattern is expected to continue for the next 19 years.
Life insurance can also assist families in meeting future obligations such as college tuition. However, experts say there are other advantages to consider.
“The death benefit of a life insurance policy provides peace of mind that you can spend assets in retirement knowing you have the proceeds from your life insurance policy to provide a legacy to your heirs,” said Angie Rinock, spokesperson for State Farm Insurance.
The best course of action is to educate yourself on the various benefits that a life insurance policy can provide.
According to the survey, 58 percent have not purchased a policy because they believe it is too expensive. 23 percent said they simply haven’t found the time to get insurance, and 22 percent said they don’t know enough about life insurance to buy it.
“No one wants to bet their family’s financial future,” said Marvin H. Feldman, CLU, ChFC, RFC, president and CEO of the LIFE Foundation. “If you’re one of the millions of Americans who don’t have enough life insurance, it’s time to stop making excuses and buy life insurance while you still can.”