If you think that life insurance is an unnecessary expense, think again. While it may be frustrating to add yet another bill to your list of monthly expenses, it would be even more frustrating — devastating, in fact — if something happened to you and your loved ones were left without a safety net.
Life insurance can protect your family's long-term financial future, even if you are not there. September is Life Insurance Awareness Month and it is the perfect time to buy the life insurance policy that best fits you and your needs.
Life Insurance Awareness MonthLife Insurance Awareness Month was established by Life Happens, a non-profit organization dedicated to educating Americans about life insurance — namely, how important it is and the different types available.
Life insurance has been around since the 1760s and it was originally intended to offer relief to widows and orphans whose husbands/fathers had died. While the purpose of life insurance has stayed the same, it is now easier than ever to buy a policy. You can now do the entire process online from any device.
In the spirit of Life Insurance Awareness Month, here are some facts to get you thinking:
•The average funeral typically costs between $7,000-$9,000 ( Source: Lincoln Heritage Funeral Advantage).
•The average cost for a public four-year in-state college is $25,290 per year. The average cost per year for a private college is — don't faint — $50,900. (Source: CollegeData)
•Approximately 20% of families in the U.S. are single-income households. (Source: Pew Research Center) This means that if something happens to either the primary breadwinner or the partner doing all the household chores, the expenses can be disastrous. If the primary breadwinner dies, no income will be coming into the household, and if the stay-at-home partner dies, all the household chores will need to be outsourced.
•The average mortgage in the U.S. is over $350,000. Without life insurance, you will leave all the outstanding debt to your family. (Source: Mortgage Bankers Association)
These numbers aren't meant to scare you, they're simply to show the reality in the US today. The last thing you want to leave for your loved ones is unmanageable expenses.
Don't Ignore the NeedIf you're convinced that life insurance is not an unnecessary expense but are now unsure which policy to buy, you're not alone. Many Americans have trouble discerning which life insurance policy is best for them and then end up putting off buying a policy. This is especially true today when there are more carriers and policy types than ever before.
So how can you decide which policy is best for you?