Life Insurance: A Badly Neglected Form of Coverage

According to the most recent statistics compiled by the Life Insurance and Market Research Association, LIMRA, the percentage of Americans who carry life insurance is at an all-time low. Forty-one percent of adults in this country, about 95 million people, have no life insurance. The statistics break down to 61 percent of men and 57 percent of women. There has been a downward trend in the life insurance industry since 2004, which is part of a greater refusal on the part of Americans to adequately prepare for the future.

The recession that began in 2009 certainly contributed to the decline in life insurance policies as a cost-cutting measure. The greatest drop in policy holders is in the 35 to 54 age bracket for men, a disturbing fact since these men tend to be the primary bread winners for their families. With unemployment hovering between 8-9 percent over the last three years, households have been lucky to have one adult bringing in an income. If the primary wage earner in the family died, with no significant savings on hand, how would the family cope?

Most people simply do not have a good answer to that question, and fail to realize that life insurance has very little to do with the policy holder, and everything to do with the people they love. The average cost of burial in the U.S. in 2009 was $6,560. Beyond the simple expense of dying, most families do not have three to six months of money on hand to allow the surviving spouse to find a job in a tight market. Forget about future goals like education for the children.

So how can you find cheap life insurance, life insurance you can afford?

The truth of the matter is that everyone can afford some amount of life insurance, as there are many product models in the genre. Every little bit of protection will help if the worst happens. Even covering the cost of burial is a tremendous assistance in a stressful and confusing time, and would preserve the cash reserves the family has on hand.

It is also important to remember that the time to get life insurance is when you are young and healthy. Factors that will be considered are similar to those involved in taking out health insurance:

● age,
● weight,
● smoking or non-smoking,
● general health,
● family history,
● and so on.

Also, don’t underestimate the power of market forces, or hesitate to use them in your favor.

Given the decline in the number of life insurance policies written over the last decade, insurance companies are competing for customers in this coverage area. Factoring in the type of policy in which you’re interested, the amount you believe you can afford, and things like how much additional business you’re prepared to do with the insurer, you can negotiate a highly competitive rate.

Start Out with Basic Quotes

Any time you are shopping for insurance coverage, you have to start out with multiple quotes for basic coverage. There are many online entities to help you accomplish this primary task. You can start by filling out the form on this page to get some preliminary quotes to serve as the basis for further research. Don’t just jump on the lowest rate you see. You’ll want to learn more about the insurer, in particular the financial condition of the company. If they have a poor monetary standing, they might not be around to pay the coverage benefits in the end.

Regardless, life insurance is not an expendable or unnecessary type coverage. In hard financial times, this type of protection is even more necessary to make sure your loved ones are insulated against the costs of your death and the loss of your income.