There are common misconceptions or misunderstandings that surround life insurance. Often, people believe it’s something that is only needed later in life. You might believe that life insurance can be costly or not worth the stress of figuring out what plan best benefits you. But no matter your age, death can come at any moment. It is best to prepare accordingly to protect your loved one’s future. Life insurance can help with funeral costs, immediate expenses, debt, and ongoing living expenses. It also does not have to cost an outrageous amount. Keep reading to learn more about what you need to know when it comes to life insurance!
Looking at life insurance policies can be overwhelming. Below are some common terms that are helpful to know before researching and choosing a life insurance policy.
Premiums: periodic payments you make to the insurance company for your life insurance
Beneficiaries: the people who receive the money upon the death of the insured
Policy: the contract between the policyholder (you) and the insurance company
Term life insurance: provides coverage for a certain amount of time or term such as a number of years
Permanent life insurance: provides coverage for life
Before buying life insurance, it is a smart idea to think about what you need while shopping around. Consider the following before deciding.
People have a multitude of reasons why life insurance is not for them. But according to a 2022 Insurance Barometer Study, conducted by LIMRA and Life Happens, 44% of households would feel financial strain within six months of losing the primary wage earner in the household. In fact, when it comes to financial insecurity, the results vary for each generation.
There is a large misconception that the older generation needs life insurance the most, but the data says otherwise. CEO of Life Happens, Faisa Stafford, believes that life insurance is the foundation of any strong financial plan. Life insurance provides people who may be more financially insecure with more faith in their financial plans and the future of their loved ones.
Also, there is a discrepancy in how many women have life insurance and how many men have life insurance. Only 46% of women have life insurance compared to men’s 53%. Of the women who are uninsured, 44% of them realize the need for life insurance. The three reasons women are not purchasing it are because life insurance is too expensive, they have other financial priorities, or they are not sure what to buy or how much.
According to Life Happens, a healthy 30-year-old can get a $250,000 20-year level term policy for just $13 a month. There are plans out there that can be tailored to you and your needs for the future without costing too much money.
Life Insurance with AFSPA
At AFSPA, we like to think that you do not buy life insurance because you are going to die, but because those you love are going to live. If you have loved ones that you care about, buying life insurance is a great idea no matter what age you are. This helps ensure that those you leave behind are taken care of once you are gone. Life insurance gives peace of mind to you and your loved ones.
AFSPA offers three life insurance plans as part of our Ancillary Insurance Programs.
To learn more, attend our Life Insurance Awareness Month webinar on September 28th at noon EST.