One statistic I’ve seen indicates while 85% of American consumers agree on the need for life insurance, only 62% say they have it. Only 50% of American households, in 2010, had life insurance.
This means, while talking to my clients every day, as many as half may not have the life insurance their family will need and I feel very personally concerned.
I often hear about the aftermath when a client, I know well, has lost a loved one and I also perceive the grateful relief in the voice of my client’s beneficiaries when they call in regard to a policy they know their loved one took pains to put into place for them.
Here are some of the important things those clients considered:
- Funeral and Final Expenses: Despite your jokes, your family isn’t likely to bury you in a pine box out in Potter’s Field. The reality is that funeral expenses are climbing past $10,000. There may also be financial obligations or medical expenses you leave behind and that burden will fall on your family. Take the time, however unpleasant, to think of the stress and hardship your pre-planning will save your loved ones.
- Income Expense and College Needs: We live in a world of two income households now. In the event of a sudden death the family’s ability to handle a life, so lovingly built, without that additional income could become devastated very quickly. 70 percent of U.S. households with children under 18 would have trouble meeting everyday living expenses within a few months if a primary wage earner were to die today – either wage earner.
- The Worst Can Happen: Once you develop serious illness you won’t be able to afford the insurance you need. If you develop a terminal illness life insurance can provide you with some financial support. Cash value insurance can also be a source of support in emergencies by requesting a loan. It can be a source of support for Long Term Care as well.
There are many other important reasons for, and uses of, life insurance. It is a critical part of personal and business financial planning but seems to be the part most often overlooked. LIMRA research shows the top two reasons people don’t buy life insurance are: competing financial priorities or because they think they cannot afford it. The second reason is where I come in.
So, when you call me about the home, auto, or liability insurance you trust me with, don’t be surprised that I will check with you about life insurance…just don’t make me repeat myself.
(statistic source: LIMRA)