If you’re like most Americans, you’re underinsured. According to The Hartford Financial Services Group’s America’s Largest Life Insurance Companies Study for 2018, more than half of all Americans have less than $250,000 in life insurance coverage—and nearly one-third have no life insurance whatsoever! That means we’re all at risk of leaving behind loved ones with too much debt and not enough money to pay it off. But while many people believe they don’t need life insurance because they aren’t wealthy or don’t have children, that’s simply not true. Everyone can benefit from having some form of protection against the loss of income through death or disability—and the sooner you start planning for it, the better off you’ll be.
If you’re like most Americans, you’re underinsured.
Here’s the thing: most people are underinsured. If you’re like most Americans, you probably don’t have enough coverage.
Life insurance can be a smart way to protect your family financially and emotionally if something happens to you. In addition to providing income for your loved ones, it can help pay off debts and secure your family’s financial future. It also helps prevent them from having to sell their home or other assets in order to pay for funeral costs or other expenses related to the loss of income due to your death (like mortgage payments).
Do you have a family?
If you have a family, life insurance is extremely important to have. If you don’t have a family, this doesn’t mean that it’s not worth getting life insurance, but the odds of needing it are much lower.
Life insurance is designed to help cover expenses after your death. It pays out an agreed upon amount of money to pay off debts and provide for your dependents when you pass away. The money also allows them to cover any other expenses they may need—like funeral costs or medical bills—while they rebuild their lives without your income stream in place anymore.
Do you work in a high-risk job?
Do you work in a high-risk job? If so, you may be eligible for special life insurance policies. High risk jobs are those that are considered dangerous and include law enforcement, firefighting and military service. These occupations require individuals to perform their duties under conditions that could result in serious injury or death.
If you fall into one of the categories above, it’s likely that your employer will pay for your insurance with an employer group plan (EGP). An EGP is a group coverage program offered through an employer that covers employees’ dependents against financial loss resulting from accidental death or dismemberment. EGPs must comply with state law requirements as well as IRS regulations governing employee benefits plans.
Are you a business owner?
Life insurance is an important consideration for business owners. A death in the family could be devastating to your business—and it’s not just about the money either. If your family members don’t know how to run the company, they may have to sell it or close it down, which would cause a lot of problems with employees, customers and suppliers.
Life insurance can help protect your loved ones’ financial interests as well as those of your business by providing them with cash so that they can keep things running smoothly until a new owner is found or until someone else steps in to take over operations on behalf of those who have lost their founder/leader.
Do you have credit card debt?
If you are struggling to pay off your credit card debt, life insurance can help. When you purchase a policy that allows borrowing against the death benefit, your family will be able to pay off the debt and avoid bankruptcy or foreclosure.
While it might seem like a frivolous expense, especially if you’re not in dire financial straits, this could actually be one of the best investments made by anyone who has outstanding debts. In fact, it’s recommended that everyone should have some form of life insurance in place.
Do you have student loans?
Do you have student loans? If so, it’s important to know that student loans are not dischargeable in bankruptcy. This means that if you file for bankruptcy, your student loan debt won’t go away. They also aren’t tax deductible (a common misconception). And they aren’t included in most life insurance policies; most carriers don’t even offer coverage on these debts. So, why would you want to get life insurance? For one thing, it can help pay off the remaining balance due on your loan(s) quickly—but only as long as there’s enough money left at the time of death to do so. A small policy that provides more than enough to pay off a mortgage or car loan could save hundreds or thousands in interest over time. It may also help keep collection agencies at bay while protecting against identity theft and other problems associated with outstanding debts after death.
For those who need further convincing about the importance of taking out a policy before getting serious about saving money towards retirement accounts such as an IRA or 401k plan: According to US News & World Report data from 2016-2017 (the last year available), 69 percent of Americans haven’t saved anything towards their golden years yet—and only 39% have started funding these plans!
Do your parents still depend on you financially?
If you’re the primary breadwinner in your family, or if your parents still depend on you financially, it’s especially important to have life insurance.
The answer to this question is different for everyone, but here are some common examples:
- If you have children, or a spouse who depends on you financially
- If there is a mortgage payment (mortgages can be paid off through life insurance)
- If there is a car payment (car payments can also be paid off through life insurance)
Are you just starting out? Or are you getting ready to retire?
Life insurance is a good idea at any stage of life. It’s an affordable way to protect your family and make sure they are taken care of. But whether or not you need life insurance depends on where you are in your life, as well as what your other financial priorities are (like saving for retirement).
If you’re just starting out, you may not have much savings and will likely be paying off student loans or a mortgage. In this case, it makes sense to get some coverage now so that if something happens to you—like losing your job or becoming disabled—your family can still pay the bills until they recover from their loss. And even if circumstances seem fine right now, it’s always good practice to plan ahead for the future when possible.
Have you started thinking about estate planning yet?
Estate planning is the process of deciding how to distribute your assets and who will be responsible for managing them after you die. This includes naming beneficiaries and creating a will or trust.
Before you decide whether or not life insurance is right for you, it’s important to consider estate planning first. Estate planning can help protect the people and causes closest to your heart when there’s no one else who can take care of them. It also helps ensure that your final wishes will be carried out as planned—whether that means leaving behind a large inheritance, making charitable donations in someone’s honor, or setting aside funds for loved ones who may need financial support once they reach adulthood (like college tuition).
Take stock of your family and financial situation before deciding whether life insurance is right for you.
Do you have a spouse, partner or children? Do they rely on your income to pay the bills? If so, life insurance is something that should be considered.
Life insurance can not only help replace lost income in the event of death, it can also make sure that your loved ones are provided for in the event of an untimely demise. This will give them peace of mind knowing that their needs will be met financially until they are able to get back on their feet again.
There may also come a time when you need to get extra coverage on top of what you already have if someone else depends on your income—like if both parents work hard but only one earns enough money for both households (usually the mom). In this situation it’s wise to look into getting supplemental insurance so there’s no interruption in paychecks during those times when someone gets sick or injured and misses time at work due to medical issues like surgeries and chemotherapy treatments; something which would otherwise cause financial strain due mostly because there isn’t enough money coming in via normal channels such as wages being paid regularly each month without interruption from unexpected occurrences like these kinds scenarios mentioned above
Life insurance is one of those things that can feel like a big, scary commitment. But if you take the time to look at your life and your finances, it will be easier to decide whether or not this product is right for you. At its core, life insurance is about protecting people who depend on you financially—and while it’s certainly important to have one in place when they need it most (like when they go through college), there are plenty of other reasons why someone might want coverage too. So take stock of your family and financial situation before deciding whether or not this product is right for them!