Life Insurance May be More Affordable Than You Realize, and More Necessary
Although about four out of every five Americans report that they think people should buy life insurance, only about three out of every five people currently carry a life insurance policy. Experts report that many people are not aware of current life insurance options, including price; while many Americans carry Medicare insurance for health issues, more than one-third of Americans do not have long term care insurance.
Some life insurance policies, experts explain, consist of both a life insurance policy and a savings account. As customers pay monthly insurance premiums, they are also able to build up their savings and to have their money invested by their life insurance brokerage service. These “whole life” insurance policies offer tax-deferred benefits to the savings account, allowing investors to avoid tax payments at first.
About 40 years ago, Americans typically saved or invested about 10% of their incomes. However, due to rising costs of living, the typical American family currently saves about 5% every year. Experts recommend investing in life insurance as a way to bear up against financial erosion. Home repairs, the cost of college, and recurring expenses have a tendency to wear away the very foundation of even the best-laid home budgetary plans.
Medicare insurance is the federal healthcare program for adults over the age of 65, but many older workers invest in life insurance policies to try and ensure that their household would be able to continue financially in the event of their untimely demise. Often, life insurance payments can cover the cost of any funeral proceedings or cremation and allow the surviving family members to cover household bills until they are able to return to work.
More than one-third of Americans report that they feel they need a larger life insurance policy. Life insurance brokerage services should be able to work with interested customers to determine the amount and type of insurance policies that would be most helpful for them to carry; saving against funeral costs is becoming a popular choice among older Americans, but many younger workers feel the pressure to plan ahead as well.