Before I began writing about personal finance, I worked with my husband for nearly eight years in a funeral parlor. Greg was a mortuary worker, while I was Director of Family Services. During my mortuary career, I learned a lot about life and death. But one thing stuck with me: the consequences of not having a life insurance policy.
I remember talking to families that were shocked their husband, father (or spouse or mother) didn’t have life insurance. Others didn’t know how to pay for their final expenses, such as funeral costs.
It made me sad because I knew how affordable life insurance is, especially for young and healthy people. I am a woman in my 40s and currently own two $1 million dollar term policies that cost me $53 per monthly.
Why People Do Not Buy Life Insurance
Consumers tend to forget about this vital coverage because they are too busy. We all know that we should have life coverage during our working years. This is especially true for parents. It’s easy for life to get in the way and to put the purchase of life-insurance on the list of things to do that we never accomplish.
People don’t even want to think of dying. I remember one family in the funeral parlor who had just lost their father and husband, who was not even 40 years old. His wife, in tears, explained that her husband had repeatedly told her that he would buy life insurance, but he didn’t want to deal with death. He already had $20,000 in life insurance through his job, but didn’t like the idea of facing his mortality during his leisure time. His family suffered the consequences of his decision.
Cost is another reason why people do not buy life insurance. Term coverage is affordable for almost everyone. Many people are afraid to take the next step because they think that it is too expensive. Many people can’t afford to pay for life insurance, as they are already struggling with their bills.
This is probably the reason why not enough people are covered. These statistics should make you nervous:
- According to LIMRA’s 2022 insurance barometer study, only 60 percent of Americans will have life insurance by 2022.
- One in five people who have life insurance know that they don’t have enough.
- The survey found that consumers tend to overprice their life insurance policies. Millennials, in particular, believe it costs five times as much.
Life Insurance: Consequences for Not Having One
According to these statistics, not many people have adequate life insurance coverage. What does this mean for andfamily members? You’ll suffer the following consequences if you do not buy life insurance before it is too late.
Your income disappears
The ability to replace your income is one of life’s most compelling benefits, especially if you have children. You don’t wish to see your income disappear and leave your family in a bind. This is what happens if you die without a life insurance policy. Your family will suddenly be left to pay for your regular bills and daily living expenses without you.
Many experts recommend buying term life insurance that is at least 10 times your annual income. Your family can then use the money to help them get back on track and replace your income.
You don’t have to worry about your debts
You may not be able to pay your debts, but you can still get a life insurance policy. You should consider buying life insurance that covers your major debts, such as your mortgage, family car loans and credit card debt.
If you do not buy life insurance, and die before you are supposed to, your family is left with the task of paying off your debts. This is a shame, especially since term life insurance can be easily purchased for less than the cost of one dinner per month.
You may need to use GoFundMe for your funeral.
In my last years of working in the funeral business, GoFundMe was created. I can’t tell you how many times families have come in to plan services with no money, only to be told that the funeral home would not allow them to make payments. Then, they would set up a GoFundMe page and ask family and friends for donations to pay for the service.
It always made me sad. Families shouldn’t be forced to fundraise or struggle to pay final expenses. I thought that if their loved ones had only a small life insurance policy they could have grieved without any added stress.
You Won’t Leave a Legacy
Finaly, life insurance gives you the opportunity to leave behind a legacy. It could be that you leave enough money for your children’s college tuition, or have a policy with enough coverage to ensure your partner or spouse never has to work again. This allows them to stay at home to raise your children. Your family will never forget that you took out enough insurance to take care of them.It is also true that the opposite is true. Many people who lose loved ones without life insurance become angry and resentful towards their partner. I can tell you that I have seen it first-hand and felt their frustration as they struggled to find a solution.
Buy Life Insurance in a Painless Way
It’s not difficult or stressful to buy life insurance. I’m a living proof of this because I purchased a $1 million life insurance policy, and the second one I bought online did not require a medical examination.
If you buy basic term life insurance, it is easy and quick to purchase. It can also be cheaper than you thought. These tips will help you to get the protection you need, without having to worry about anything.
1. Compare quotes online and shop around
You should compare online life insurance quotes first, mainly because it is so easy. Online life insurance providers such as Haven Life and Bestow allow you to quickly price a policy online.
For example, to get a quote, you only need to provide your zip code, birth date, height, weight and zip code. To get a quote from either company, you don’t need to provide your contact details or email.
Check out our list of the Best Life Insurance Companies in 2023 to compare quotes from different providers.
Do not go with the first company that you find. Compare policies based on their monthly costs, coverage amount, and duration. Only then can you be sure you are getting the best deal.
2. Play around with the Coverage Amounts
It is also important to know how much insurance you need and want. Most experts recommend buying 10 times your annual income in coverage for life insurance, but you may want to purchase more. term coverage You need more than you think. There is no such thing as too much insurance, but there can never be enough.
Decide how long you’d like your policy to be valid. Most term life policies are available for 10, 15, 20 or 30 years. This allows you to customize your policy according to your specific needs.
You may choose a policy lasting 30 years if you are young with young children and want to replace your income for the rest of your working life. You may be comfortable with a 15- or 20-year policy if you are in your 40s and plan to retire when you reach 55. It is not a question of “right or wrong” but you should take into consideration these factors.
3. Search for providers who don’t require a medical exam
LIMRA’s 2018 Insurance Barometer Study found that half of consumers would be more likely to buy life insurance without a physical exam. Can you blame them for this? You have to schedule time for medical exams, which require blood draws. When a medical examination is needed, it’s easy to put off buying a policy.
Many life insurance companies don’t ask for a medical examination. They use algorithms to determine the riskiest individuals and those who are eligible for immediate coverage. The second policy that I bought for myself was from Haven Life and did not require me to take a medical examination.
You can provide for your family in the best way possible with a Life Insurance Policy.
If you were to die, you would want to provide your family with a nest egg of money to ensure their well-being. To learn more, click on your state.See An Estimate
I bought this policy in my late 30s for $750,000 and pay only $27 per monthly. I was able to apply for this policy on-line and have coverage the following day. This is all done without having to see a nurse and without the needle prick.