Life insurance is protection against the loss of income that would result if the insured passed away. According to Life Insurance and Market Research Association International (LIMRA), approximately 35 million households are uninsured and 50 million American have inadequate life insurance. September is national life insurance awareness month, but the time to start preparing is now. Take the first step and consider whether you need life insurance.
“The top two reasons people don’t buy life insurance are: competing financial priorities or because they think they cannot afford it,” (LIMRA, 2012). How do you know if you should give life insurance serious consideration or rethink whether you have enough? If one or more of the following situations apply to you or your family you may want to evaluate your need for life insurance:
- If you have children and both parents work
- If you have children and one parent works
- If you have children and you cannot afford to pay for their final expenses
- If you are a single parent
- If you have an outstanding shared debt
- If you are married and your spouse could not support your current lifestyle without your help
- If you are married and your spouse may have to care for one or more elderly parents
The above list is not exhaustive, but is meant to get you started thinking about the kinds of family or lifestyle situations when life insurance could benefit you in providing for your love one(s). For more research based information on life insurance you may want to read Understanding Life Insurance (http://web.aces.uiuc.edu/vista/pdf_pubs/LIFEINS.PDF) by University of Illinois Extension. Remember, family conversations about money can be difficult. “Can We Talk? Improving Couples’ Communications” (http://edis.ifas.ufl.edu/fy044) is a great refresher on effective communication before tackling a delicate topic like money.