(BPT) - A topic that many people find challenging to understand and even talk about is life insurance. However, having life insurance is like any other kind of insurance - it offers peace of mind and financial protection in case something unexpected happens in the future.
In the 2024 Insurance Barometer from the Life Insurance Marketing and Research Association (LIMRA), while just over half (51%) of American adults said they have some type of life insurance coverage, 42% say they need life insurance - and 22% say they do not have enough coverage.
The good news for anyone who needs more insurance (or would like more coverage) is that it's most likely easier to navigate, purchase, and pay for life insurance than you think. In addition, features such as a no-fee electronic funds transfer (EFT), which is offered by Boston Mutual Life, make the process even more seamless.
What's holding so many people back from having a financial safeguard against the unexpected?
Why don't people have life insurance?
The LIMRA study uncovered the top 3 reasons preventing people from buying life insurance (or having enough of it):
- The belief that it's too expensive.
- Having other financial priorities.
- Not being sure what type they need or how much to buy.
Fortunately, these reasons may not be as big of a hurdle for you as many believe. Here's why:
Most people overestimate the cost
In the LIMRA study, 72% overestimated the true cost of a basic term life insurance policy. In fact, the overestimate from all respondents totaled over 3 times the actual price. Where did they get the idea life insurance would be much more expensive than it really is? Over half (54%) said their estimate was based on a "gut instinct" or "wild guess."
To learn the actual cost of life insurance for you, contact a local insurance professional. It may surprise you how much more affordable it is to get the peace of mind you're looking for.
Navigating financial priorities
It's understandable for people of all ages to have feelings of financial insecurity. While those feelings pervaded all demographic groups in the LIMRA study, almost two-thirds (62%) of the people who currently own life insurance reported feeling financially secure, compared to the feelings of less than half (46%) of those who do not own life insurance.
In fact, for those earning a household income between $50,000-$150,000 per year, those who own life insurance were 20% more likely to feel secure than those who do not.
Financial obligations and priorities may vary for each family, but the top five financial concerns revealed in the LIMRA study have remained consistent for a number of years:
- Having enough money for retirement
- Paying for long-term care
- Saving for an emergency fund
- Supporting oneself if disabled or too sick to work
- Paying for emergency medical expenses
Many of these concerns can be addressed through investing in whole life insurance. Whole life insurance is permanent life insurance that provides protection for your entire life and offers financial support through a claims payout to your beneficiary (or beneficiaries) at the time of your passing. But in addition to that protection, whole life insurance also accumulates a cash value that you can access during your lifetime if you need it for expenses such as buying a home, paying for college, or settling debts.
What kind of insurance will best protect you and your family?
It can be confusing to know what kind of insurance to purchase, and how much. Every individual and family situation can be unique, so it's important to consult an insurance professional about your specific needs. In addition, ensure that you're making the most of all the insurance benefits provided by your employer by talking to your HR representative. You can also find information about insurance options that can provide peace of mind and future financial protection at BostonMutual.com.
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