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September Is…

During September, we try to help educate our customers and our agency family about the risk of not having proper life insurance coverage.

For most people, talking about life insurance sounds almost as fun as eating rotten eggs. However, ignoring it can compound a family tragedy by turning it into a financial nightmare. More and more people are finding themselves in that unfortunate situation.

A recent survey by the nonprofit LIFE Foundation found that 1 in 4 Americans would consider canceling their life insurance policy in order to save money. Before making that kind of drastic decision, consider this mistake you’re probably making — you might decide you need more coverage, not less.

MYTH: In a recent survey of middle income Americans, it was found that while respondents agreed everyone should have some level of life insurance, most believed that it should primarily cover bills and funeral expenses. The idea of having a policy that paid out seven to ten times one’s salary, an amount that could easily make sense for someone with young children, sounded like an attempt to sell a needlessly large policy to the respondents.

FACT: 1 in 3 adults have no life insurance at all. Of the remaining people, many of them have only the insurance that comes from their workplace policies, which is usually not enough for people who want to support dependents after their death.

How much would it cost to support your children in the way you want to? To pay for their college or pay off the mortgage? Many people, when adding up how much of their income they would need to replace, forget about the benefits that come with their job, such as health insurance and retirement account payments. People often lost track of how LONG the life insurance payout should support their children and other dependents after they die.

Many people also mistakenly think life insurance is expensive, but it’s possible to find a policy that fits your needs and your budget. Term insurance, which provides temporary insurance over a specific time period, is more affordable than permanent insurance, which lasts a lifetime. In addition to managing financial risk, people sometimes use permanent insurance as an investment tool, as well. Those on a tight budget tend to choose term insurance.

Call our office today to let us help you determine what coverage is the best fit for you and your family.


Published with permission from BGI Systems. Source.