From day-to-day operations to long-range plans, the COVID-19 pandemic has changed so much in our world. But there's one thing that didn't change: the need for life insurance. Here are the reasons to take a closer look now if you have put off getting it, or more of it.
The key reasons people listed in the life insurance buying survey were to cover funeral-related costs and to substitute their families for lost income.
That makes absolutely perfect sense. The tax-free death benefits of life insurance in its purest form, as a means of income replacement, when someone dies, guarantees that your loved ones are financially taken care of so that they can pay off final bills and debt.
But policies that also include "living benefits" are also available that can meet holistic financial needs, such as:
Paying for long-term care expenses
Protecting a business
Providing supplemental retirement income
And these living benefits also appeal to people: 45 percent of those surveyed said if it offered more than just death-benefit cover, they would be more likely to buy life insurance, and you could use it while you are alive for potential needs or emergencies. The good news is that there are already these types of policies!
According to the report, the top two obstacles cited by individuals for not getting life insurance were the expense and conflicting financial goals. But life insurance can be fairly cheap. In fact, you might be able to get term life insurance coverage for less than your monthly utility bill or the amount you spend on your regular morning coffee per week, if you're safe. The broad variety of viable options ensures that a strategy is in place to suit various budgets.
Innovations in technology are also changing how we purchase life insurance, from a long and complicated method to an easier, quicker, and environmentally friendly one. And 40 percent of the Millennials surveyed said that if they could do it absolutely online, they would be more likely to buy life insurance. This is actually possible now! You can request a quote and apply for a policy online, and then have the policy electronically signed and shipped. Many insurance providers also give the ability to bypass subscription laboratories for healthier people. Today, policies in as little as 24 hours will theoretically be released.
It can be the financial backbone of your family, offering security against unexpected events. Sadly, many Americans are uninsured or underinsured: According to the 2020 Lincoln Financial Community Life Insurance Awareness Month Report, only 50 percent of Americans own a policy.
However, the COVID-19 pandemic has put the importance of life insurance back in the mainstream. More than a third of those surveyed said that due to the pandemic, they believe life insurance is more important to own now, while a third also said that they have or intend to buy new or additional life insurance.
Among younger Americans, especially Millennials, the intent to buy life insurance was even greater. That's good news since they also hit new life milestones, such as starting a family or buying their first home.
While awareness of the need for life insurance has been enhanced by the global pandemic, life insurance should still be seen as an important financial planning tool that can help families create, maintain, secure, and pass on their assets and legacy. To help you decide where life insurance fits into your financial strategy, ensure that the coverage you have continues to meet your needs, or discuss your options if you need coverage or more of it, I would encourage you to talk with a financial or insurance professional or your workplace benefits specialist.
it doesn't have to compromise the budget. Check out these great reasons to consider life insurance:
We spend so much time talking about the reasons why adults need life insurance, income protection, covering funeral expenses, etc. that it's easy to forget that insuring your children might also be a good idea for you.
If you have dependents and/or debt, this is particularly true. For this reason, it's safe to assume that your employer's life insurance is probably not enough.
Options, which involve applying to a more fitting organization or applying for a particular form of policy, can still exist. If you've been denied life insurance, here are three actionable steps you can take.
It's easy to assume that the answer is "no." After all, if you were to pass away, the main objective of life insurance is to provide your family with cash. So, it seems reasonable to think that if a spouse or children are not relying on your earnings, you do not need life insurance.