Since when does paying for a cell phone, a vacation or going shopping trump taking care of your loved ones long term? Here are some astonishing facts we found in our new 2015 Insurance Barometer Study, plus an easy and affordable “fix” called life insurance.
Let’s be realistic. If you have an adequate investment and pension portfolio; if you have made provisions for your health care costs; if you have no one relying on you for financial support, maybe, just maybe you can afford to retire.
Did you know that a healthy 65-year-old man has a life expectancy of 87 and a woman, 89; and that 38% of the men and 50% of the women will live to age 90, according to recent research on longevity risks and retirement.
So, do you need life insurance? Let’s look at three reasons you might.
“It’s too expensive!” is the common refrain when Americans are asked why they don’t get the life insurance protection they need. But—and it’s a big but—80% overestimate how much it costs.
For the fifth year, Life Happens partnered with LIMRA to produce the Insurance Barometer Study, which looks at consumer trends and consumers’ perceptions regarding life insurance, retirement and their financial well-being.
“We’ve consistently seen over the last five years that consumers think life insurance is more expensive than it really is,” says Marvin Feldman, CLU, ChFC, RFC, president and CEO of Life Happens. “We need to help educate the public about how affordable life insurance can be.”
Here are more findings:
Life insurance certainly would have helped us get back on our feet after my dad’s death. It could have helped pay for my mom to go back to school and helped with the mounting bills. It would have eased the stress that comes with worrying about how to pay for groceries and bills. Life insurance would have been a godsend. I’ve learned that unexpected, and sometimes life altering, things happen in life, and life insurance can equal security and peace of mind. It’s a necessity!
If you’ve spent time looking at information about choosing the right amount of life insurance, you’ll have found some fairly standard answers, but also a lot of ambiguity. That’s because the amount of life insurance a person needs varies on a case-by-case basis. Still, just like with other kinds of financial management, industry experts have weighed in on what they feel is best for the average consumer.
One of these rules of thumb is taking out life insurance coverage equal to five to 10 times your salary. To many of us, that sounds like a lot of money. It’s only when you get into the details of figuring out how people use money over time that you realize that five to 10 times salary can actually be a pretty conservative estimate.
Here are some of the considerations you’ll want to think about and take into account: