The majority of Americans have life insurance for when the unthinkable happens. However, 2 out of 5 American adults are putting off life insurance at the peril of their own families. Also, most people who do have it don’t have enough. Primary breadwinners are worried about the upfront costs, but imagine the cost to your loved ones if you pass away suddenly with no plan... The good news is, life insurance policies cost WAY less per year than most people know. It’s simple. Read more to learn the ways you can save.
There are a lot of common misconceptions about life insurance and how it works. The 2018 Insurance Barometer Study by Life Happens and LIMRA shows that 44% of people under 35 overestimate the cost of life insurance by 5x the actual amount! The truth is, there are huge financial benefits for people who do their research to find a good policy. In other words, it pays to be prepared. In fact, more than a third (35%) of households would feel the financial impact within 1 month, if the primary wage earner died. (2018 Insurance Barometer Study, Life Happens and LIMRA)
According to US News & World Report, new state laws on the way reserves are calculated have providers dropping their rates on new TERM life insurance policies by as much as 15%, with an average savings of 2.6%. With flexible term life insurance, typically, you “use it or lose it”. You simply pay for a set number of years and if you pass away during that time frame, your beneficiaries get paid.
If you are thinking about beefing up your current life insurance situation, or checking into new policies, you shouldn’t wait. Typically, the younger you are when you sign up, the lower the rates. Life insurance not only provides financial assistance to cover the family when a major earner passes away, it gives you peace of mind. What price can you put on knowing your family will be able to pay their bills if something happens? In many cases, you can get this peace for the same price as a daily latte at your local shop. The croissant is extra.
Once you are confident that you need more life insurance, a great place to start researching plans is online. In 2018, about half of adult consumers visited a life insurance company website and/or sought life insurance information online. There are a lot of phone scams out there who prey upon seniors, so remember to be skeptical if you get contacted out of the blue. If you can find the information yourself using an independent online search and verify reputations and reviews, chances are, you are in good hands.
Times are changing. The IB study concludes that 29% of consumers say they’d research and buy life insurance online, up 7 percentage points from 2016. The online competition is fierce and life insurance providers are more transparent than ever.
If you are ready to find out more about life insurance options within your budget and routine, be sure to research and find the right option for you.