A survey by the LIFE Foundation shows that 93 percent of Americans think it’s important for most people to have a life insurance policy, yet almost half of those surveyed said they don’t have enough coverage.
Let’s face it, life insurance is not a “fun” product to purchase. But the reality is it’s necessary. Even though the rates are low, a surprising number of Americans don’t own a life insurance policy. Most Americans would benefit from one, even if they are single.
Many people think of premature death as unpleasant to think about and unlikely to happen. But securing a life insurance policy when you are young and healthy can offer the opportunity for better rates and, ultimately, greater coverage.
Also, the time and effort required for a person to find information about life insurance seems to prevent them from doing so. Life insurance calculators are available to assess your needs which can save you time. Some shy away from life insurance because of medical conditions that they do not want to discuss. However, there are policies available without an initial physical exam (though the cost may be higher).
Some people think of insurance premiums as losses and don’t see the future gain of a life insurance policy. Another reason is that people focus on home, auto and health insurance and figure they can’t afford life insurance.
The irony is that every day there are more people facing retirement who are going to need financial assistance. According to an article in the Associated Press, more than 10,000 Baby Boomers a day will turn 65. This pattern will continue for the next 19 years.
Life insurance can also help families cover future obligations like money for college tuition. But experts say there are other benefits to consider.
“The death benefit of a life insurance policy provides the peace of mind that you can spend assets in your 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 read up about the range of benefits a life insurance policy can provide.
In fact, the survey found that 58 percent haven’t purchased a policy because they say it is too expensive. Twenty-three percent said they just haven’t found the time to get insurance and 22 percent said they don’t know enough about life insurance to make a purchase.
“No one wants to gamble with their family’s financial future, but that’s essentially what people are doing when they don’t buy life insurance coverage that they know they need to protect their loved ones,” said Marvin H. Feldman, CLU, ChFC, RFC, president and CEO of the LIFE Foundation. “If you’re one of the millions of Americans who lacks adequate life insurance protection, it’s time to stop making excuses and buy life insurance while you still have the chance.”