Have you ever wondered, “why should I buy life insurance” or “can I even afford it?” If so, you’re in the right place.
In 2020, according to a LIMRA Insurance Barometer study, only 54% of all people in the United States were covered by some type of life insurance.
It’s shocking that so many American families are without life insurance!
I unfortunately learned at a very young age the importance of life insurance. My father passed away at the age of 46 and I had just turned 18 two weeks prior. I have been very passionate about life insurance ever since, including taking at my own policy at the age of 19.
I think about this often and not just as an insurance agent, but from my own personal experience. I think about my father. I think about everyone he left behind: my stepmother, my siblings, his business. I think about life insurance and how it was there for his family during a very challenging and uncertain time.
80% of Americans are in debt, according to Dave Ramsey. 40% of American households are raising children under the age of 18, according to census data released in December 2020. However, life insurance isn’t just intended to pay off debt or provide support for your children; it’s so much more!
Life insurance is necessary for anyone: whether you are in debt or debt free, raising kids, single, married, retired. Everyone has a need for life insurance. At Knight Magee Insurance, we sit down with you to learn about your individual circumstances and needs, and tailor our recommendations and offerings around you.
Often, we are asked, “why should I buy life insurance” and here’s why:
- Life insurance can offer income replacement for your dependents. If your spouse, children, or relatives are depending on your income, life insurance can replace that income if you die. Often individuals feel this only pertains to those families with young children, but it can apply to couples as well, if your partner would be financially stricken by the loss of income. It can also apply to dependent adults, such as your siblings, adult children, or parents who continue to rely on you financially.
- Life insurance is a great tool to cover final expenses. Final expenses can include burial costs, as well as probate and other estate administration costs. It can also include any existing debts or medical expenses not covered by health insurance. Often individuals use life insurance to ensure a mortgage can be paid off at the time of their death.
- You can use life insurance to create an inheritance for your heirs. Even with no other assets to pass to your heirs, you can create an inheritance with the purchase of life insurance.
- Life insurance benefits can be used to pay estate taxes, so that heirs do not have to take a smaller inheritance or liquidate other assets.
- You can also use life insurance for a charitable donation. You simply make the charity the beneficiary of your life insurance. This allows you to make a much larger contribution than if you donated the cash equivalent to your policy’s premiums.
- You can purchase term or whole life insurance. With the purchase of whole life, or permanent life insurance, you can accumulate cash value within the policy, which is a savings you can access and draw from at any time.
Now that you now know why you should buy life insurance, let’s discuss cost. Life insurance can be very affordable. The cost is based on a multitude of factors: your age, sex, health history, and level of coverage you are looking to purchase. Life insurance can be as inexpensive or expensive as you choose, and at Knight Magee Insurance we are able to provide multiple illustrations and let you choose the policy that’s not only right for you and your family, but your budget too.
Give us a call for a no obligation life insurance review 804-320-0129 or email myagent@kmicoverage.com to schedule a time to talk.