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BLOG 08/28/2020

Why is life insurance important?

Partner, kids, home… you’ve built a pretty great life. Life insurance is designed to help you protect it, which is exactly why life insurance is important.

Just like car insurance is there to help if you get in a car accident or home insurance is there when that cooking project goes awry, life insurance is there if something happens and you’re not there to provide for your family. You may be insuring your own life, but ultimately, you buy it for those you love.

Like many types of insurance, you have to buy life insurance before you actually need it. So how high should it rank on your priority list? Here’s a closer look at why people need insurance.

How important is it to have life insurance?

Is life insurance important to have? If anyone counts on you financially, the answer is “yes.” It’s the main reason why people need insurance in the first place.

Life insurance is a contract between you and your life insurance company. If you die during the time the policy is active, your insurance company will give your family a cash payout, with no strings attached. There are several reasons why life insurance is important, and why you should consider buying, including:

  • It provides a financial safety net. Your partner and kids count on you financially, and that’s one of the biggest reasons why it’s important to have life insurance. Life insurance can help make sure that they have a cushion, no matter what. A recent study shows that 44% of people say that they would feel the financial impact within six months if the primary wage earner passed away, and 28% would feel hardship within a month or less. Your family still has bills to pay, groceries to buy, college to save for, and a mortgage to cover. Life insurance can go toward all of that, if needed.
  • It’s an affordable way to protect your family. For most people, term life insurance is the way to go because it’s simple and affordable. A healthy 30-year-old man can buy a 10-year, $250,000 policy starting around just $13 a month. By paying a little, you can help your family potentially access a lot of money if they need it – money that would be nearly impossible to save up on your own. For example, the cost of raising a child is $233,610 on average. Term life insurance is a way to help your family pay for needs like these, without having to save that entire amount. Check out our term life calculator for a quote.

Why people put off buying life insurance

If you’re still wondering, “is life insurance important to have,” the proof is in the figures. Research shows that 41 million Americans say that they know they need life insurance, but don’t have it yet. More than half (52%) of people say it’s because they don’t know which type of life insurance or how much life insurance to buy.

We can help. Whether you have questions about why it’s important to have life insurance, or need advice to help you find the right policy, the eFinancial team can help you compare options from top-rated carriers and shop with confidence. Give us a call or start your quote online today.

 

At eFinancial, our goal is to make life insurance simple, affordable, and understandable for everyday families. This content is intended for educational purposes only. Each post is carefully fact-checked, reviewed and updated regularly to ensure the information is as relevant as possible.