No one really wants to buy life insurance. Why would they?
You can spend your money on other stuff that you really enjoy. Plus, with life insurance, you always think about the “worse case” scenarios. How pessimistic!
The only time most people start thinking about life insurance is when certain life events occur. Whether it’s the birth of a new child or you lose someone close, it’s these type of events that get the wheels turning.
A large chunk of people between the age range of 30 and 50 have not finalized a will, and many also haven’t spent too much time considering their life insurance options.
Results from a March 2011 survey conducted by Genworth Financial and the University of Virginia’s Darden School of Business revealed that around 70% of single parents and 45% of married parents did not have a life insurance plan.
Why Do So Few People Actually Purchase Life Insurance?
For many people, searching for the perfect life insurance policy could be daunting or even tedious. However, when you factor in children, purchasing a home, or even funding costly hobbies, securing a life insurance policy starts to make more sense.
The main reasons people buy life insurance are because they feel a need to provide financial security for the future of their family, and it also provides peace of mind.
When we talk to our clients, most of them say they didn’t buy life insurance because they didn’t know they needed it.
In 99% of cases, this is wrong. We are here to tell you this- you probably do need coverage.
Here are a few reasons to purchase life insurance:
- Provide for your final expenses
- Money for your family’s living expenses
- To replace your income
- Pay off your home loan
These are only a few of the reasons you might need a life insurance policy.
It Doesn’t Have To Be Hard to Find
Life insurance typically involves two main categories for you to pick from: term and whole. Term is temporary, while whole is permanent. Term is cheaper and whole is going to be more expensive.
Term is often a fitting option for younger individuals since it is generally more affordable. However, there is one main disadvantage to choosing this form of coverage: for those who live past the term, the policyholder and/or their family will reap no financial benefit. This type of policy is typically renewable (even though a large amount don’t qualify for renewal), and many feature permanent coverage conversion.
Term life policies are a great option for those wanting to avoid paying insurance premiums longer than a decade. For those only needing coverage for a select period of time, choosing a term policy is the way to go. A permanent life insurance policy is more ideal for those participating in estate planning.
Life Insurance is NOT Expensive
Premiums on 10-year level guaranteed term policies are some of the cheapest life insurance you can buy and all of the best life insurance companies carry them.
To provide a real-life example here, a 40-year-old female could hypothetically secure $250,000 in life insurance coverage via a reputable life insurance company for a $16 per month premium in August 2011. The cost and availability of life insurance depend on such factors as:
- current health
- type and amount of insurance purchased
These are only a few of the different factors the insurance company is going to review. Each factor can impact how much you pay for your policy. If you’re in terrible health and you’re a smoker, then yes, your life insurance MIGHT be expensive. But very few people fall into this category.
Most people can qualify for an affordable plan.