The Risks Of Not Having Life Insurance (and why it’s a hidden bargain)
The vast majority of Americans say they live paycheck to paycheck just to make ends meet. Nearly 80 percent (78%) of full time workers say they’re one emergency or unexpected bill away from taking on more debt or simply not be able to make a payment on an incoming bill. The fear of not having enough money for your family can understandably push people to make cuts from their spending. There are a number of reasons why your life insurance policy shouldn’t be one of those financial cuts, especially when you consider the financial security for your family if ever the policy needs to be used.
Important vs. Urgent
The majority of our time and money is focused on the now, the urgent – the stack of bills on the kitchen counter, putting food on the table, and keeping a roof over our heads. It can be difficult to think about how your family would handle not having your income. But what’s most important is knowing your partner, children, or parents would be able to maintain your home and pay off bills in the event something were to happen to you.
Cheaper Than You Think
A LIMRA study reveals 65% of households have not purchased life insurance because they think it’s too costly. The misinformation that a life insurance policy is pricey can put families in serious financial jeopardy should the unexpected occur, especially to one of the income earners in the home.
Statistics show you probably spend more on coffee, a gym membership, or wasted food each month than a life insurance policy would cost. A healthy, 30-yearold man can get a 20-year, $250,000 policy for as little as $160 a year. What could you forego each month to make the $13 payment for life insurance?
Better Now Than Later
If you’re of the mindset that you’re not “of age” to buy a life insurance policy, think of the benefits. While no one wants to think about not being around to enjoy life with their family, the unexpected does happen – every day – and we need to be prepared. Plus, buying life insurance in your younger years means you’ll pay a lower premium. Trying to buy life insurance later in life means your cost goes up.
Family In Financial Need
If nothing else, the peace of mind knowing your family will be financially secure is worth getting a life insurance policy. Think about the current bills you pay, debt you’ve accrued over the years, and the cost of final arrangements ($7K – $10K) – that’s not something you want to unload on your family, especially in a most vulnerable time. A policy that covers your income for about five years is recommended. So, if you make $50K a year, you’ll want to have a policy valued minimally at $250K.
It’s tempting to assume or hope that misfortune passes over you and your family, but reality tells you there’s an urgent need to be prepared. With many life insurance policies less expensive than what you spend on cable television each month, obtaining a cheap life insurance policy is within your grasp – and you get to sleep better at night knowing your family will be taken care of in the moment of need.