If you’re like the average person across the county, there’s a chance your savings account wouldn’t hold out if unexpected situations occurred – like a death in the family. If you or your partner were to pass away, would your family have to cover the financial burden?
In 2017, 57 percent of Americans had under $1,000 in their savings account. Although that’s an improvement compared to 2016, when about 69 percent had less than $1,000 of savings, more and more Americans – 39 percent to be exact – have nothing in their savings.
So if you were to pass tomorrow, do you have enough of a financial cushion set aside for funeral expenses and continuous costs, so your family could carry on with life?
If your answer is no, you’re among the over half of the country that should look at life insurance options.
But not every person believes life insurance is essential. With the world life expectancy rate roughly at 71 years as of 2015, the risk of premature death is quite low. However, this also means that if you were to die at a young age unexpectedly, your family may still have many years down the road. Especially if your family is young and healthy, it is highly likely they will live for many years to come.
Without life insurance, your family could bear the weight financially if you were to die unexpectedly.
If you have a mortgage, student loans, credit card debt or any other debt to your name, that doesn’t die if you suddenly do. It remains, and someone has to pick up the tab. Help your surviving partner and family members to continue with the life you helped them build by setting up a life insurance plan that covers outstanding expenses.
Your life insurance policy can also be utilized to pay current bills as well. Vehicle payments or other payments that still carry on if you pass—your life insurance can help with that.
Are you a business owner or do you have a business partner? Depending on the policy you choose, life insurance can also be used to protect the business if you or your partner were to die. Death wouldn’t close the doors on your business in this case.
Life insurance isn’t just essential for young business people or families; it’s also important to look at if you’re considering retirement. Do you have family member that is dependent on your retirement income? A couple in which both people have retired is often on a fixed income, so if one was to pass, a life insurance policy can help ensure the spouse won’t bear additional financial stress.
If you are planning for yourself and your family’s future, life insurance should be a part of that plan. Depending on the policy you choose, life insurance allows you to cover multiple needs.
But don’t jump into just any life insurance plan. Research your options to decide which is the best fit for you.
There are two types of insurance policies commonly used today: term insurance or whole (permanent) insurance. Term insurance usually has the cheapest premiums that locks your premium in for a particular term (roughly 10 to 30 years). Whole (permanent) insurance can last for as long as you live depending on funding and tends to be a little more expensive, but it does have its perks.
So talk to a professional about the different life insurance options available to determine which best suits you and your family. You’re never too young or too old to purchase life insurance when it means your family’s financial security.