Studies show that over 40 percent of adults in America do not have life insurance.
According to the Life and Health Insurance Foundation for Education, a non-profit organization dedicated to helping Americans take personal financial responsibility using life insurance, 50 percent of widows surveyed in 2013 said that widowhood caused them financial distress. One in four of today’s 20 year-old citizens will become disabled before they retire. Sixty eight percent of Americans believe that disability insurance is needed but only 30 percent have it. Eighty six percent say they haven’t bought life insurance because its too expensive, yet overestimate the true cost.
What does all of this mean? It means, regardless of your situation, life insurance can prevent financial trauma in your life and its worth is 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.
Life insurance can be paramount to supplementing or maintaining sufficient income after the death of a spouse. Life insurance benefits can serve as a means of savings, an inheritance for heirs, or a method of paying final expenses.