In 2015, the nonprofit Life Happens and the insurance industry research group LIMRA conducted the Insurance Barometer Study to discover the number of those who need life insurance. From the study, they learned that 30 percent of Americans believe they need more coverage. Meanwhile, 43 percent say they would feel a financial impact within six months if their primary household wage earner died. Lastly, 54 percent say it’s unlikely they’ll be buying a life policy within the next year, and the reason is because it is too complicated and too expensive. Since a policy is not a tangible necessity, people prioritize other financial needs.
Just because it is intangible does not mean that it should be superseded by your other financial needs. This simple misunderstanding along with several others are robbing millions of people of long-term financial security.
Two of the biggest misunderstandings include who need a policy and what life insurance can be used for. To be sure, there are certain groups that need it more than others. You might be surprised by how many different kinds of people really need a life policy.
Breadwinners
If you are the primary income earner in your family and you have dependents, then you need a life policy. Depending on a few factors, term and whole life can function as an income replacement. Therefore, if something were to happen to you, your dependents would be able to pay for every day expenses.
Business Owners
Having a permanent life policy means you can borrow against the cash value to cover business expenses, as well as pay off business debts. In addition, it can fund a buy-sell agreement. Moreover, a life policy can help your heirs pay off estate taxes. Lastly, life insurance can fund a retirement plan for your employees.
Stay-at-Home Parents
Nowadays, it is common for both parents to work. However, there is still a significant number of stay-at-home parents. As such, it is imperative that these parents are covered if something should happen to their employed spouse.
Single Mothers
Did you know that more than 40 percent of children born in the U.S. are born to unmarried women? And for the most part, these women are in their 20s and 30s. As the primary caretaker of your child, it is critical for single mothers to invest in life insurance so that they can protect their babies should anything happen.
Singles with No Children
That’s right! Even singles need to seriously consider getting life insurance! There is no time like the present to start preparing for your future financial security. For those hoping to be married with children some day, they especially need to get life insurance now while life insurance rates are low! Being young and healthy means you can likely qualify for a lower rate. Simply put, lock in your low premium while you can.
Parents of a Special-Needs Child
No matter when you pass away, life insurance will ensure that your special needs child is protect with financial support.
Someone with Co-Signed Student Loans or Credit Cards
For those with student debt or credit debt, you might want to consider term life insurance. I can cover the cost of your debt so that you don’t pass it on. Even more, the policy can be scheduled to end when the debt payments end. Win-win!
High Net Worth Individuals
If you have a high net worth, then you need life insurance. A permanent policy can help your heirs cover estate or inheritance taxes.
Life Insurance Questions?
We hope that this information on Life Insurance was useful to you.
If you’d like to learn how we can help you plan your retirement, call Empower Brokerage at (888) 539-1633 to speak to one of our Life and Annuity experts or leave a comment down below.
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