Statistics show that only 49% of Americans have life insurance. This is a significant drop from the 72% of Americans who owned life insurance in 1960. With so few Americans purchasing life insurance, it begs the question: Is life insurance worth it?
Why Buy Life Insurance?
No one likes to think about their death. However, it is something you should consider – especially if you have a family or business. Life insurance is a solution to many problems that could happen due to your passing. It can cover funeral costs and help cover everyday living expenses for surviving family. It can also help a business function so that, if a partner passes, other business partners can buy out the heirs and continue to operate the company.
Here are just five things life insurance can cover in case of the death of you, your business partner, or an income provider in your family:
1. Income replacement
2. Help survivors pay off debt
3. Aid in paying off estate taxes
4. Cover educational expenses for surviving children
5. Pay expensive burial costs
Life insurance can also provide investment opportunities, depending on the type of insurance you buy. Whole life insurance plans begin to invest a portion of your premium each year so the annual cost doesn’t increase as you age. Additionally, whole life insurance has a cash value that can be borrowed against over time. This may be the right strategy for your portfolio.
As one gets older and responsibilities accumulate, life insurance makes more and more sense. However, after about age 50, life insurance prices go through the roof. So, if you believe you will have a family one day or you are starting a business, it may be a good idea to buy life insurance now – before your insurance prices climb.
85% of Americans agree that people need life insurance, but few feel they have adequate insurance or don’t have it at all. It may be unpleasant to think about insuring your own life, but having life insurance will likely be a huge help to your family and your business during a difficult time.