There are a variety of reasons why some people do not purchase life insurance as an investment. In many cases, consumers feel the coverage may be too expensive for their budget. This holds particularly true at a time when unemployment remains near 10 percent.
However, it is those families who struggle financially who stand to benefit a great deal from a life insurance policy. The funds from a plan can be applied towards paying down debt and other goals if the policyholder passes away.
Insurance Information Institute vice president of media relations Michael Barry said consumers can also reduce costs by not buying more coverage than is necessary.
“Look for a policy that meets your needs,” Barry said. “There are ways to save money when buying life insurance but they don’t always involve paying a lower premium immediately.”
It is wise for people to review their finances and income to help determine how much coverage they need to purchase in addition to the type of plan they chose. Term life insurance, for example, tends to be less expensive, because it is designed to cover a person during a specified time period.