A report said Americans making plans for their retirement would be doing themselves a disservice by passing on life insurance.
According to Bankrate.com, there are a number of tenets to building an effective retirement strategy, including sound investments, a solid budget and a plan for getting out of existing debt. However, many of those strategies can be upended if a catastrophe prevents a person from earning or saving money, said the source. Should a crisis occur that prevents a family's top earner from bringing in income, a term life insurance policy can step in and be a safety net.
"Insure your life and your ability to earn a living through disability," Brian Kuhn, a certified financial planner in Maryland, told the source. "If you have a budget, you'll know how much you can set aside [for life insurance]. Whatever that buys you, it's better than not having anything at all."
Premiums vary based on a number of factors, including age, so it's best to compare life insurance quotes and secure a policy earlier in life. The Insurance Information Institute says policies are cheapest when policyholders are young.