With the economy still recovering slowly, many Americans may have chosen to forgo life insurance to save money. It's a mistake that could cost them more down the line, according to a report.
Experts told USA Today many Americans are making a costly choice in passing on life insurance, since the absence of such a policy could actually create even more financial harm in the event that a primary breadwinner passes away or becomes unable to work. It's an especially poor decision considering that rates on term life insurance are falling, said the report. In 1994, a 20-year term policy for a healthy 40-year-old male would cost $995, today, that same policy would be just $355, said the report.
Permanent life insurance policies, meanwhile, could offer extended benefits, especially for business owners. Jacques Laventure, owner of a fitness club, said he was surprised how beneficial a policy could be for him when he looked up life insurance quotes.
"That enlightened me about how business persons can use it as a tax shelter," he told the source.
Data from LIMRA, an insurance industry group, showed just 44 percent of U.S. households have individual life insurance.