Life expectancy for Americans is higher than ever – almost 78 years. On the other side of the coin, the death rate has dropped dramatically to 760.3 deaths per 100,000 people.
If one sits down and does some math with the life expectancy and lower death rates, the first thing that comes to mind is that if people are living longer and dying less, they will need to have more money to do that. In addition to needing to have more money, they will also need life insurance that makes sense for them in order to be covered properly.
The problem is that many Americans just don’t have spare cash right now, if they have “any” cash at all during this recession. All over the U.S. things are tight and people don’t spend money on anything they don’t think is absolutely necessary – often that includes life insurance. Unfortunately that is somewhat counter intuitive as this is a product that people “do” need in times like this despite begin strapped for cash.
Many people are faced with situations such as taking out a loan/mortgage for a house and then not going for the life insurance to cover it in case of a death. Those who already have life insurance are also cutting back on their coverage, in the hopes they will pick it up later when things improve economically.
Right now the life insurance market is fairly competitive and the rates are pretty good. There are many different options open to people and they’re fairly easy to get information on by going online to various life insurance websites. Fighting with the fear of not having enough money to pay the bills usually stops people from considering purchasing life insurance. However, if they can see past the immediate problem to the long-term future, this would be a worthwhile and smart investment.
One doesn’t need to buy a life insurance policy with all the bells and whistles. A basic life insurance policy is a grand place to start. Make it a point to check that out first and also compare what other kinds of policies happen to be available as well. Whole life is also an option – for which a person pays a set premium while decreasing life insurance lowers the coverage while the mortgage decreases. Generally speaking whole life insurance pays out on your death, while the term cover simply refers to insurance for the “term” of that particular policy. That means it could end without any payout, so in the long run, term insurance is cheaper.
There are tough questions to face when trying to determine the amount of life insurance that would work to cover the family in the event of the death of the major income earner. For instance, are there other loans and debts to pay off, has the mortgage been increased or borrowed against for other reasons? Has the level of the life insurance been raised to cover all the extra debt? Is it feasible to “not” have insurance or be adequately covered?
Always make it a point to speak to a life insurance expert to get the real scoop on all the differing policies available for various situations. The agent knows the product and can definitely provide professional advice on what would work best in certain situations.