According to a Statista survey, in 2021- 48% of adult consumers who are the financial decision makers of their household did not have life insurance.
If something were to happen to you today, could your family still get by comfortably?
Here are 3 reasons why you may want to consider life insurance for you and your family.
Replace lost income
Experiencing a loss in the family is never easy and unfortunately, it may also lead to financial hardship. Even without your income - your family will more than likely still need to cover monthly expenses to maintain their lifestyle.
Life insurance replaces your income after your passing and gives your family the funds they need to maintain their standard of living. Payouts can be used to help cover expenses such as mortgage, childcare, utilities, and other day-to-day living expenses.
Fund your children's education
The Education Data Initiative reports the Average Student Loan Debt is currently $37,693. Averages range per borrower from $36,510 for federal, and $54,921 for private student loan debt.
529 plans and life insurance are some of the common ways to create college funds for your children. 529 plans work by investing after-tax contributions and are subject to market risks - like a Roth IRA or 401(k).
Whereas with life insurance, a portion of your premium goes towards a cash-value account. For more on preparing for your child's college tuition, click here.
While education is costly, there is relief in knowing that life insurance can also be used to build your child's college funds.
Employer plans aren't enough
Surprisingly, life insurance from your employer may not be meeting the needs of you and your family. These group life policies are generally not customizable; leaving a gap between your coverage and what your family really needs.
In addition, if you were to leave your job - employer provided benefits end. By purchasing a personal policy separate from work, you can have a customized policy that will follow you from one job to the next.
Life insurance is not exactly at the top of many people's to-do list, and it can even be an emotional topic for some. However, there is benefit in addressing the topic sooner - rather than later.
Premiums typically increase with age, along with the risk of health-related issues.
For more information about the types of life insurance, click here; or contact us and an agent will reach out to you within 24 hours.
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