A life insurance policy can be an affordable way to protect your family. But some people don’t purchase life insurance because they think it will be too expensive. That is not necessarily the case, however.
Life insurance is designed to provide for a partner or a family that relies on your income. If you pass away, your family members may not be able to get back on their feet easily.
The COVID-19 pandemic has likely made people more aware of their own mortality, with life insurance applications jumping in 2020, according to MIB Group. But it may not be enough. According to a 2020 study by Limra, just 59% of Americans have life insurance, and about half of those who do have life insurance do not have enough.
You may want to discuss life insurance with your spouse or partner to determine what his or her needs are. Certainly, it is not an easy discussion. No one likes to anticipate his or her own death. But if a loved one relies on your income, you will undoubtedly want to ensure he or she is cared for if something happens to you.
If you’re concerned about cost, you can make life insurance more affordable by purchasing a policy sooner rather than later. The younger you are, the more likely you are to be healthy, and the healthier you are, the lower the premium will be. There are also different types of life insurance, some more affordable than others. Term life insurance is the most affordable. It pays a benefit to your survivors when you die within a specified period of time. Whole life insurance is more expensive. It combines investing with term life insurance.
If you’re concerned about your life insurance coverage, reach out to our office so you can get the best information to help you determine how much insurance and which policy make the most sense for you.