When it comes to insurance, most people have the basics. Drivers have car insurance to protect their vehicles, homeowners have homeowners insurance, and thanks to private insurance and the Affordable Care Act, more people are making sure they have health insurance coverage. Even the nation’s 2.2 million farms are protected by farmers crop insurance in case inclement weather or natural disasters destroy their products. Yet there’s one type of insurance that many people look over despite having a need for it: life insurance.
Having a life insurance policy may be more necessary than you think, even if you think you’re too young for one. Although nearly one-third of Americans surveyed say they want to get more coverage in 2015, they also tend to overestimate just how much these policies cost. In total, 80% of consumers think that life insurance costs more than it really does. Those who belong to Generation X (born between about 1965 and 1980) think that it costs 119% more than it does on average; the Millennial generation (born between the early 1980s and 2000) think that the cost is 213% higher than it really is. And yes, even if you are a Gen Xer or a Millennial, you can still benefit from having one of these policies.
Why does life insurance matter so much? No matter how old you are, reasons to get this coverage include:
- Security for the future: Leaving behind a family without an insurance policy may mean that they will be unable to pay the bills. A term or whole life policy will ensure that spouses and children are provided for after your death. That even includes protection for a mortgage or other debt, so your home isn’t foreclosed after you’re gone. It also helps you transfer property, investments, and other wealth to your family and heirs.
- Funeral expenses: Grieving families are already dealing with loss. Choosing life coverage brings peace of mind by paying for funeral and burial costs. These can normally amount to $10,000 or more, so a comprehensive policy can save a lot of this trouble later on.
- Lower premiums now: Generally, the earlier you start a policy, the better your premiums will be. This is because they tend to raise as you age. Getting started sooner will give you peace of mind, too.
- A sound financial investment for the future: Whether you want to make sure that your children receive a college education, even after you’re gone, or you want to find a tax-advantaged way to secure your future, an insurance policy may be the right answer. A life policy also helps you and your family pay estate taxes and other costs.
Need more information about the right policy for you? Make sure you get a quote with us or contact us for more information.
