True or false: Life insurance isn’t necessary until later in life. False! Life insurance is helpful at any stage of your adult life as it reduces stress and provides you and your family with financial security. September is Life Insurance Awareness Month which means it’s the perfect time to consider buying insurance if you’re not insured already. A recent study by LIMRA and Life Happens found that one in five people mistakenly think they don’t qualify for life insurance. There are countless myths and misconceptions about life insurance, and speaking with a financial professional can allow you to understand more about it. Keep reading to learn five surprising facts about life insurance!
1. Half of American adults don’t have life insurance.
Many Americans don’t have life insurance for one reason or another, but life insurance is very important if others are relying on you for financial support. Financially protect your loved ones and enjoy peace of mind by purchasing life insurance as soon as possible.
2. Around 75% of uninsured consumers overestimate the cost of life insurance.
Countless consumers, Millennials especially, overestimate the cost of life insurance by a tremendous amount. The average cost of term life insurance for a healthy 30-year-old is around $170 per year, and almost half of Millennials estimate it to be more than six times more expensive. This misconception puts so many families at risk of financial hardship.
3. Most uninsured Americans admit they haven’t purchased life insurance because they don’t know how much they need or what to purchase.
Knowledge is power, especially when it comes to financial topics. Numerous Americans avoid purchasing life insurance because they don’t know what to buy or how much to buy. Talking to a financial professional allows you to truly understand life insurance and how it can fit into your life.
4. Over 70% of Americans with life insurance say they feel financially secure.
Life insurance allows you and your family to feel financially secure in an unpredictable world. It’s important to have a plan for the unexpected, especially since we’ve watched the unexpected unfold over the past few years with Covid-19, among other things.
5. Over 40% of Americans wish they wouldn’t have waited to buy life insurance.
Procrastination can hurt you in any aspect of life, especially if you wait too late to purchase life insurance. Young consumers tend to think they can put off buying life insurance until they’re older. Life insurance, however, is much less expensive for those who are young and healthy. It’s a good idea to learn about life insurance and buy it as soon as possible.
We know that life insurance isn’t the most exciting or comfortable thing to talk about, but we’re here to help. Learning about life insurance and how it can fit into your life is a good way to set your loved ones up for financial security. Contact us or visit our website today to speak with a financial professional about life insurance!
This article is meant to be general in nature and is not intended, and should not be construed as personal advice of any kind. Please consult your financial advisor prior to making financial decisions. Nick Brinson is a Financial Advisor with U-Vest Financial®, a separate entity from LPL Financial and can be reached at 850.300.7055. Securities and advisory services are offered through LPL Financial, a registered investment advisor, Member FINRA/ SIPC.
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