Why don't more Americans own a life insurance policy?
Life insurance is hardly a benefit that should be implemented later in life, and it certainly covers more than just funeral expenses. Life insurance provides an essential safety net for ongoing financial obligations such as mortgage payments, childcare, education, loands, debt, and general living expenses.
So why is it that there is a steady decline of Americans that have life insurance?
They think they don’t need it
In an era defined by unparalleled innovation and increasing awareness of financial security, it is surprising to discover that a significant number of Americans still believe that they don't need life insurance. One of the primary factors contributing to this perception is a sense of invincibility. The notion of facing mortality head-on is challenging for many, leading them to deny the need for life insurance. However, unforeseen tragedies can strike at any time, irrespective of age or health. By failing to acknowledge this reality, individuals unknowingly leave their families vulnerable to financial hardship.
They have life insurance through their employer
While employer-sponsored life insurance is a great added benefit, it should not be your only source of life insurance, because it may not adequately meet the specific needs of your family and financial circumstances. Industry guidelines recommend 7-10x salary for the life insurance benefit amount.
They find it confusing
There’s nothing that turns people away from signing up for an “optional” insurance policy than being confused. With a multitude of policy options, coverage levels, and insurance jargon, it's no wonder that many find themselves feeling overwhelmed and confused. Understanding the various types of life insurance, such as term life, whole life, or universal life, along with their respective benefits and drawbacks, requires careful consideration. It is crucial, however, to overcome this confusion. By seeking expert advice and dedicating time to research and education, individuals can ultimately make informed decisions about life insurance and gain peace of mind for the future.
It’s expensive
Many individuals consider life insurance as a burdensome expense, viewing it as an unnecessary investment that can be postponed indefinitely. But the truth is that life insurance is an invaluable asset that provides financial support and safeguards your loved ones' future in the event of your untimely demise. It is also possible to find a life insurance policy to fit your budget and it may be more affordable than you realize.
Netflix Subscription
$16/mo
Takeout 1x/week
$80/mo
Avg. Life Insurance Policy
$25/mo
By seeking the guidance of trusted insurance professionals, you can overcome these common misconceptions and embrace the vital role that life insurance plays in securing our future. Take proactive steps today to secure an appropriate life insurance policy for your circumstances.
This information is intended for information purposes only. Any reader understands that Apex Benefit Group is not providing legal advice, tax advice, or professional services in this article. This article serves to offer practical information regarding the subject matter and is not a comprehensive resource.
You may also be interested in:
Insurance is an essential part of financial planning, providing protection and peace of mind for individuals, families, and businesses. However, before purchasing insurance, it's important to have a clear understanding of its purpose, the different types available, underwriting guidelines, insurance providers, and policy inclusions and exclusions.