According to a recent life insurance industry survey, only 44% of American households have individual life insurance–the lowest percentage in 50 years. There are 11 million homes with children under the age of 18, that are without any life insurance policies. Even if you don’t have kids or a spouse who relies on your income, you still need a policy to cover your debts and funeral costs so your family isn’t left on the hook for it.
If you haven’t purchased a policy because you can’t afford it, or you simply have other financial priorities – consider that premiums are at their lowest in years. A 20-year term policy that pays out $500,000 for a healthy 35-year-old man, can be purchased for only $25 per month. More importantly, think about whether or not your family can survive without your income, or who will be left to cover any debts you leave if you die unexpectedly. Paying a little now can pay off immensely when your family needs it most.
Maybe you’ve just been putting it off, because you’re young and healthy and it just seems wasteful to pay for something you can’t imagine needing. But the younger and healthier you are, the cheaper your premiums will be, so this is exactly when you want to purchase a policy. All too often, people only think about buying a policy when they get sick, which is when you’re least likely to get great coverage for a decent price.
You may simply feel your employer is providing group life insurance benefits, so you don’t need to worry about it. And you might be right, but read the policy details carefully and make sure they’re giving you adequate coverage. Leaving your family struggling to meet ends after you’re gone is the last thing you want, so be proactive and protect them.