How much do you think life insurance costs? If you’re a Millennial, chances are you’ll overestimate this cost by a whopping 213%. If you’re a Gen Xer, you’ll probably only overshoot by 119%.
According to the 2015 Insurance Barometer Study by Life Happens and LIMRA, cost is the number one reason Americans give for not owning life insurance, even though 80% of consumers misjudge the price for term life insurance.
September is life insurance awareness month—an industry-wide campaign aimed at dispelling the myths and teaching the importance of life insurance to the 40% of Americans who are living without it. Here are some fast facts you may not know about life insurance:
- A $250,000 term life insurance policy for a healthy 30-year-old can cost as low as $13 per month.
- If you have private student loan debt, a life insurance policy can help pay off your balance should something happen to you. Otherwise, this debt transfers to your co-signer.
- The older you are, the more expensive your premiums are. If you wait until you have a family, you could end up paying more for the same amount of coverage.
- The breadwinner isn’t the only one who needs life insurance. If your spouse is a homemaker and you have children, think about how much it would cost to replace the services he or she performs: day care, cleaning, transportation, and more. A life insurance policy can help offset this cost.
- Life insurance through your employer usually isn’t enough. This death benefit is typically 1-2 times your annual salary. Life insurance experts recommend a benefit of at least 5-8 times your annual salary. Plus, this coverage goes away if you leave your job or retire, so it’s better to look at personal coverage earlier in life.
- Many small-business owners take out loans to help grow their businesses. If you were to die before paying these loans back, a life insurance policy can help cover the debt and protect your family’s financial security. The sale or liquidation of your business may not cover debts if your family has to sell quickly at a discount or during poor market conditions.
Contact your Yetter Insurance Agent today for more facts and a free quote on life insurance. Ask us about the benefit of a multi policy discount when buying life insurance from the same company as your home and auto insurer.