According to studies, more than 40% of adults in the United States do not have life insurance.
According to the Life and Health Insurance Foundation for Education, a non-profit organization dedicated to assisting Americans in taking personal financial responsibility through life insurance, 50 percent of widows surveyed in 2013 reported financial distress as a result of widowhood. One in every four 20-year-olds will become disabled before retiring. Sixty-eight percent of Americans believe disability insurance is essential, but only 30% have it. Eighty-six percent say they haven’t purchased life insurance because it’s too expensive, but they grossly underestimate the true cost.
What does it all mean? It means that, regardless of your situation, life insurance can help you avoid financial hardship, and its value is often underestimated.
“Life insurance is an essential income replacement. Not only does it cover day-to-day living expenses for survivors, but it helps secure a future financial plan, including having a comfortable retirement,” said Cindy Houndell, JD, president of Women’s Institute for a Secure Retirement.
After the death of a spouse, life insurance can be critical to supplementing or maintaining adequate income. Life insurance benefits can be used to save money, leave an inheritance to heirs, or pay for final expenses.