According to the 2013 LIMRA life insurance study, 85% of people say they need life insurance, but only 44% of people actually have it. This gap indicates that people understand the benefit of having life insurance, but many tend to put off actually buying it. According to the study, there are a number of reasons for this:

• Life insurance can be complicated and boring
• It is perceived as expensive (although the same study shows 80% of people overestimate the actual cost!)
• And perhaps most importantly, it deals with a subject matter that most of us just don’t want to think about - our mortality.

In its most basic form, life insurance is designed to pay a beneficiary a certain amount of money (the death benefit) following the death of the insured. In other words, life insurance protects the family from loss of income due to an individual’s death. For example, if a father unexpectedly passes away, the life insurance proceeds will be paid to the family, allowing them to continue to rely on his income, even after his passing.

This will allow the family to do things such as:

• Pay off the mortgage
• Pay off other debt including vehicles and credit cards
• Fund the children’s education
• Provide for burial costs
• Maintain the same lifestyle that they are used to

Life insurance can serve other purposes as well:

• Guarantee insurability for the future, even if there are changes in health
• Assist in estate planning
• Whole life policies provide a savings component, typically with a guaranteed rate of return

While the financial impact of these can be measured, we understand the emotional impact is priceless. And while no one likes thinking about death, it may be time to set some time aside to plan for the unexpected, and to guarantee your family will maintain the same quality of life no matter what happens. Contact us to learn more and have peace of mind!