Life insurance is extremely important, especially if you have a family. So why are many parents foregoing the security and safety that a life insurance policy provides?
According to a recent study conducted by Bankrate.com,37 percent of parents with kids under the age of 18 do not currently have life insurance.
*Insert face palm here.*
While the other 63 percent may be insured, the study also has shown that about a third of parents with life insurance have $100,000 or less of protection.
That’s not much better.
As parents, life insurance is even more important to have considering the higher risk and the more lives you are responsible for covering. So why are so many parents skimping on it?
Perhaps, we are just a bunch of risk-takers, feeling the adrenaline rush each time we turn down a recommended precaution. First step - no life insurance, next step - no car seats for the kids. Or, perhaps the more likely reason is because the public is uneducated about life insurance and how it works.
It seems as though young parents do not all understand the concept of life insurance, and the investment being made. With a life insurance policy, you put in money that will be useful to you later on. If parents purchase permanent life insurance policies, they will not only have insurance to help in the case of their unexpected death, but money can be taken out against the policy to use if needed throughout their life. So why aren’t more people taking advantage of this?
People seem to be thrown off by the price tag, and the lies associated with life insurance. Too many people assume that they don’t need it yet, and it is a waste of money to purchase it when you are young. They feel that it is only necessary when you are older. Wrong. Life insurance is actually cheaper and easier to get when you are younger, and can be even more important to have when you have a family who depends on you and your income. Imagine if something happened to you, and you were not insured. If you have any doubts that your family would be able to easily continue on without you and your income, then sure, take the risk of being uninsured. But if there is any doubt or worry at all you need coverage now.
As for the coverage you should be getting, it seems as though too many parents are slacking here too. Yes life insurance is helpful, but you need to put a little more thought into the policy you get. Any old policy that’s cheap and provides minimal coverage simply will not do. You need to think about the worst case scenario, and try to cover all your family’s needs, as well as provide extra funds for unforeseen risks.
Lots of people seem to get the idea that double their salary is the right amount, but you need to think bigger than that. How much life insurance should you invest in? Well, the answer is: it depends.
But don’t be like the 37 percent with no coverage at all. Make sure that you are doing everything you need to protect your family.
You need a life insurance policy that will suffice, and cover all your needs, because your family is important. Remember that you get what you give, so invest now and see the money you want when you need it most.