Life insurance is not for the person who dies; it protects the people who live. Now is an ideal time to re-examine the amount of life insurance you and your family have in force.
Would you believe that 1 in 5 families with children under age 18 do not have life insurance? An estimate of 48 percent of U.S. households are underinsured by an average of $200,000. In a 2018 survey, it was found that the most common reason respondents gave for not buying insurance was they incorrectly believed it was too expensive. Most families surveyed estimated the cost of a $250,000 policy for a healthy 30-year-old at three times its actual cost – an average of $160 a year – the monthly cost for many common expenses. Life insurance prices, especially term life, have remained at affordable levels while other daily expenses have increased.
Deciding what type and how much life insurance to buy is complicated. Our agents can help you consider the right questions. For example:
• What are your average monthly expenditures and how long will they continue?
• What is your time line?
• Will my family be able to survive financially after I am gone?
Keep in mind, Life Insurance is also important for the one who cares for the children on a regular basis. How will the major bread winner’s ability to produce income be effected if his or her spouse is not around to tend to the children? Consider the new debt or burden on family and friends because they now have to pay for child care services, like taking children to and from school/activities, while the bread winner is working?
If you view life insurance as taking care of your family, you gain a better perspective on the need for life insurance.