The main reason consumers don’t buy life insurance is simple – they are forgetful and busy. We all know that we need life insurance during our years of employment, which is especially true for those with children. But it’s very easy to let life distract us, and buying life insurance falls into a list of other tasks we never get around to doing.
Another reason why individuals do not buy life insurance is the price. The point is that term insurance cover is so cheap that almost everyone can afford it. People think it is expensive, so they avoid following up on it. This is probably the reason why so few people have adequate insurance cover. Here are some statistics that should frighten you:
- According to LIMRA’s 2018 Insurance Barometer Study, only around 60% of Americans had life insurance in 2018.
- Among people who have life insurance, 1 in 5 know that they need more
- Consumers surveyed tend to overestimate the value of life insurance, with millennials, in particular, believing that life insurance costs 5x the actual sum insured.
Consequences of Not Having Life Insurance
Based on these statistics, not enough people have life insurance, and those who do may not be insured enough to make it last. But what could this mean for your family? Here are the main disadvantages you face if you don’t get a life insurance policy now before it is too late:
Your Income Disappears
Income replacement is one of the most justifiable reasons to subscribe to life insurance and this is particularly true if you have children. Suddenly, your family is left trying to cover regular bills and living expenses without your income. You don’t want your income to disappear, leaving your family in the lurch suddenly.
This is why many experts recommend buying at least 10x your income in term life insurance. That way, your family has money they can use to replace your income until they get back on their feet and grieve.
Your Debts Don’t
Your income may disappear once you are dead, but your debts certainly won’t. With this in mind, you should buy life insurance to cover your important debts, such as your family car loans, home mortgage and all your credit card debts.
If you don’t buy life insurance and die before your time, your family will be left without you to try to cover all your debts. It’s a shame to leave them in this situation – especially when term life insurance can easily be bought for the price of dinner every month.
You Will Not Leave a Legacy
Finally, life insurance allows you to leave a legacy. This could mean that you leave enough money to pay your children’s university tuition or that your spouse or partner never has to work again so they can stay at home and raise your children. If you have enough life insurance to take care of your family, they’ll never forget it.
The opposite is also true. Many people whose loved ones die without life insurance end up resentful and angry at their partner for leaving them in this situation.
Since you read this article, you are probably on the brink of buying life insurance. You probably already know you need it, so don’t let one more day go by without it. You may not think anything can happen to you in the next week or month, but life doesn’t always go as planned. If you are unlucky, your untimely death may be an exception.
Take the time to get a life insurance quote and you’ll never have to wonder what your family would do if you died. Life insurance will allow you to continue to care for them after you’ve left this Earth and there is nothing more thoughtful and loving than that.
Let us know in the comments below whether you have sufficient life insurance.