Life insurance. Have you stopped reading yet? What about financial struggles for those you love? Are you interested now? As a topic, life insurance probably ranks with death and taxes on the fun-o-meter. But, this is Life Insurance Awareness Month. It’s an important topic because life happens. So, keep reading.
First, a few facts:
Roughly 30 percent of households had no life insurance coverage in 2016.
Only 44 percent of all households had individual life insurance in 2016 a 50-year low.
Four in ten households with children under 18 say they would be in financial trouble if the primary wage earner died suddenly.
Another three in ten would have trouble meeting monthly expenses beyond a few months.
Here are my top 5 reasons you need life insurance:
Number 5: You have a family. It’s a no brainer if this is you. If you’re not there to bring home the bacon, they might not starve, but they sure may struggle.
Number 4: You have debts. If you die, your estate must pay your debts before your family receives anything. Life insurance will cover those debts so your family doesn’t have to.
Number 3: You rent – don’t have a mortgage, you still pay rent. Who will cover the rent if you’re gone? If you have a life insurance, it’ll be covered.
Number 2: You have a job. No kids, no mortgage, live at home still with the parents – good reasons to not worry about life insurance, you say. But, what happens if you’re unable able to work long-term? Income protection, another form of life insurance, can help make sure you can afford the lifestyle you’re accustomed to living.
And, the number 1 reason … Peace of mind!
Let’s face it, life happens. It throws curveballs, fastballs and wicked knuckleballs at you all the time. Finding even just a little peace can be elusive. Life insurance is a way to make sure you, and your loved ones, will be financially ok no matter what.
In short, you’re paying the insurer for a financial peace of mind.
Reynold Jones is a member of the National Association of Insurance and Financial Advisors – Texas. Reynold advises clients on ways to meet their insurance and financial planning needs.