Scary thought right? Walking across a rope with nothing to catch you if you fall. It is all about risk; right? The risk you could lose your balance and end up a spot on the floor. Not a pretty image is it? You would want that net in place to ensure your safety. You would want to know everything will be alright if you fall screaming from the sky.
Makes sense doesn’t it? Consider another question. If you or your spouse were to die, what would your family have as a financial safety net? Would they suffer financially as well as emotionally? How would the bills get paid? Would your family have to drastically change their lifestyle?
According to a “2014 Insurance Barometer Study, Life Happens and LIMRA” 31% of those taking part in the study say they would feel the financial impact from the death of the primary wage earner in one month. The study further uncovered that almost half of adults age 25 – 44 are concerned with leaving dependents in a difficult financial situation should they die prematurely. And a third of people wish their spouse or partner had life insurance – or more of it.
This brings us to why? Why do families all across the United States fail to have even a basic safety net? The Life Happens and LIMRA study explored why families delay buying life coverage. The reasons are broken into two categories, first is cost, second priorities and procrastination. Let’s look at cost.
According to the study:
- 80% of Americans overestimate the cost of life coverage
- People with no life insurance overestimate the cost by more than 3x and those with coverage by more than 2x
- Those under 25 think the cost of life coverage is almost 10x its true cost
Cost is certainly a factor for families who are considering insurance however, and even though they realize coverage is needed, many never get around to discussing their needs and cost with an insurance professional. If you have never discussed life with an agent, consider doing so before deciding insurance is out of your budget. When you consider the financial security owning life insurance would provide for your family, isn’t it worth exploring?
PRIORITIES AND PROCRASTINATION
Life is full of distractions. We often put off till tomorrow what we should do today. We fail to see the long term impact of kicking the can down the road so to speak. Buying insurance is often set aside in favor of other priorities. The study found that:
- 59% haven’t bought life insurance or more of it because they have “other financial priorities”
- 52% put expenses such as cable or cell phone ahead of buying life insurance
- 30% haven’t bought life insurance or more of it because they “haven’t gotten around to it”
THE BIG PICTURE
Who benefits from the proceeds of life insurance? Life coverage is not for the dead, it is for the living. Owning life insurance will provide money when it’s needed most – at the death of a wage earner. The death benefit provided by life insurance can enable your family to remain financially sound. This means; staying in their home, attending the same school, providing money for college and replacing lost income. All things you would have provided for your family had you lived.
Is life insurance right for you and your family? Only you can answer that question.
WHAT’S THE NEXT STEP?
First find an insurance professional. Meet with them and discuss what financial needs your family would have in the event of your death. Be sure to work with an insurance professional you feel you can trust. If you get an uneasy feeling in your gut after a conversation, move on to the next professional. There is no shortage of insurance professionals where you live.
What’s important is you take action. Waiting to buy life insurance can be costly. A change in health could mean higher cost or in some cases coverage not available. Because we do not know when death will occur, dying without life insurance could leave your loved-ones in a serious financial bind. These critical money issues could be avoided simply by owning adequate life insurance.
THE BOTTOM LINE
Life insurance plays a significant role in a family’s overall financial picture. Though there is cost involved in owning life insurance coverage, the piece of mind and financial stability it provides can be invaluable to your family if life does not go as planned.
A life insurance professional can help you determine if you have a need. They can assist you in finding a plan to address that need. However, the choice is yours whether to own life insurance, or not. Only you can make that important financial decision.
Barry S. Taylor is a Financial Professional with Integrated Planning Solutions. Seeing the need for better financial education and a genuine desire to help everyday families to improve their financial health. Barry is passionate about helping people discover a better way to approach their finances.
Through Integrated Planning Solutions, we can help families with affordable protection to build a financial safety net.
Want to learn more about Integrated Planning Solutions? Visit us at [http://www.ipsolutionsaz.com].
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