Life Insurance Must Knows

Having life insurance comes with a lot of questions and uncertainties: How much life insurance I need? What factors impact my premium? According to studies by J.D Power Financial, 40% of adult Americans have no life insurance, and over 50 million people in this country lack adequate life insurance. Thinking about aspects of your life that continue after you’ve passed is a bit difficult, but necessary. Leaving funeral costs, debt and other expenses to your family is never a good thing, especially with the average funeral cost being an upwards of $20,000 dollars. If you have a spouse or children, it is also important to make sure they are taken care of in case something was to happen to you.
 
According to studies, about 40% of American households with children said they would not be able to meet immediate living expenses if they lost the primary wage-earner. Life insurance is not only smart to have, it may become a necessity in the future.  Before choosing a life insurance policy it is important to know some essentials.

Important Statistics

• 93% of Americans think life insurance is necessary – out of these, 63% of adults actually have life insurance BUT 50% of them do not have adequate coverage.
• 3 in 10 American households are uninsured – the top reason people don’t buy life insurance is because they believe they cannot afford it!
  

How much life insurance do you need?

• Funeral expenses: To cover the funeral and burial you need an average of $10,000-$20,000
• Enough to cover debts and mortgages, loans and credit cards
• To pay for your kid’s college education: Public school costs an average of $60,000, and a private school $132,000
• To replace your income, experts recommend 10x your gross annual income.
  

What can change your life insurance needs?

• 41% of life insurance shoppers said life events like having or adopting a child, getting married, or buying a home prompted them to shop for life insurance

It all adds up! The following are some estimates of life changing costs:

• Getting married: $25,631
• Having a  child: $226,920
• Buying a home: $188,400

What impacts your premiums?

• Health condition
• Age
• Risky occupation
• Smoking
• Risky activities
• Driving record
• Type of policy – In order to keep your premiums low, buy early!

Did you know?

• With 90% of the insurance industry’s $5.3 trillion assets invested in the U.S. economy, life insurers are one of the largest sources of investment capital in the nation
• Life insurers are also the largest single source of bond financing for American businesses, Holding 18% of all U.S. corporate bonds

While it is difficult to imagine, it is important to prepare in advance for a time when you may no longer be around. Determining the appropriate type of policy for you and your family can become an overwhelming task. To avoid facing an important decision alone contact our agency, here or click on our site to read more about the life insurance policies we offer so we can help you feel more secure about moving toward the future.
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