Life Insurance is one of those things that many people don’t want to talk about either because they don’t think they need it, they think they can’t afford it, or it’s just something they don’t want to think about.
So Why Is There A Life Insurance Awareness Month?
Actually it’s because of all of those reasons above and the very significant fact about the financial position of families across the US:
1 in 2 households without life insurance coverage would struggle to pay day-to-day living expenses if the main wage earner in the household passed away.
This finding by the 2016 Insurance Barometer Study by Life Happens and LIMRA is a stark reminder of just how important it is for families to plan for their financial future. Would your family struggle financially without you?
Life Insurance Awareness month is a campaign by the non-profit organization Life Happens to help raise awareness of the financial fragility of many US households and how life insurance can help provide a stable foundation for these families should a wage earner pass away unexpectedly. In fact, insurers in the US have paid out over $865 billion in life insurance benefits since 2000, helping families throughout the US provide for their loved ones after the death of a family member. Life Insurance Awareness Month is here to help you understand how life insurance can protect your family’s future, IntelliQuote is here to help you find the right life insurance plan.
Understanding Your Coverage Needs
The same study from Life Happens also found that 40% of people hadn’t purchased a life insurance policy because they were unsure about their coverage needs and which plan would provide the best protection for their family. At IntelliQuote we believe in helping people make smart decisions about their insurance choices, that’s why we’re here to help you understand your coverage needs. To start let’s begin with the basics:
-What is life insurance?
Life insurance is an insurance policy that pays out a death benefit if the policyholder passes away while the policy is active.
-How long does life insurance last?
Life insurance can be purchased with a guaranteed level term (no price increase during the term) , which is typically between 10 and 30 years, or for life. Term life policies offer the most affordable coverage but after the guaranteed period term ends the price can go up significantly. Permanent life policies come in various forms and last for life but are more expensive. If you’re insure which type of policy would best fit your family’s needs our licensed insurance agents are here to help guide you through your options.
-What do people use life insurance for?
Many people simply take out life insurance to provide a cash lump sum to provide their family with a financial security blanket. However, many people have a set idea on the expenses they’d like to provide for financially. Some of the common items that people take out insurance to provide money for include:
- The remainder of the mortgage on the family home
- Childcare expenses until their children begin school
- Day-to-day living expenses
- Large one off bills such as property taxes
- A college education fund for their children
- To provide a wedding fund for their children
- To cover final expenses such as funeral costs
- Income replacement for a set period
- Money to cover estate taxes
What you choose to provide coverage for will depend on your family’s current financial situation and any planned future expenses. The great thing about life insurance is that it provides a cash lump sum, meaning that the money can be used on whatever expense is most important at the time making it an extremely flexible method of protecting your loved ones.
-How much coverage is best?
Your coverage needs can be calculated very easily, in fact IntelliQuote has an online life insurance calculator to help you determine the right amount of coverage for your family. To get a full picture of your coverage needs you should think about your existing expenses and any expenses you expect in the future. At a minimum your calculations should include all expenses for childcare, education, day-to-day living, and accommodation for your family.
Life Insurance Doesn’t Cost As Much As You Think
64% of people think life insurance is too expensive to be a good option for their family but you’ll be surprised at just how affordable life insurance is. In fact, most people in the Life Happens survey overestimated the cost of life insurance by more than double. To find the most affordable plan it pays to compare quotes from multiple companies. Comparing prices helps you identify both the coverage options that are available and how costs vary between insurers.
Finding The Coverage You Need To Protect Your Loved Ones
IntelliQuote’s online insurance marketplace can help you find the right coverage for your needs. Our free online quoting service lets you compare quotes from multiple insurers so you can find the plan that fits your budget and gives you the peace of mind in knowing that your family will be provided for. Use our online quoting form or call one our licensed agents today to find a life insurance plan that protects your loved ones.