Still Don’t Have Life Insurance? What Are You Waiting For?
Still don’t have life insurance coverage? The good news is that now is an excellent time to get covered. We were recently notified that American General reduced the price of its already affordable Select-a-Term product. Other companies have also cut rates on term life insurance over the past year as well, including SBLI and John Hancock. The fact is that term life insurance rates have never been more affordable. A simple level term policy could help your loved ones replace your income and pay necessary expenses in the event that you are not around to provide for them. Still need convincing? Take a look at the statistics below. How would your loved ones cope with these obligations?
Important Obligations that can be Covered by Term Life Insurance
Term life insurance provides protection for a set period of time such as 10, 20 or 30 years. It can not only be used to replace income lost if a breadwinner passes away but it can also be used to pay other important obligations. Here is a list of some of the more important obligations that most people face.
Mortgage Balance – The average mortgage balance in the United States is $156,333. Source: NerdWallet.com
Credit Card Debt – The average US household owes $15,706 in credit card debt. Source: NerdWallet.com
Cost to Raise a Child – Parents are projected to spend $245,340 to raise a child born in 2013 to age 18. Source: USDA.gov
Cost of College – According to the College Board, a “moderate” college budget for an in-state public college for the 2014–2015 academic year averaged $23,410. A moderate budget at a private college averaged $46,272. Source: NerdWallet.com
Student Loan Debt – The average US household has student loan debt totaling $32,953. Source: NerdWallet.com
Funeral Costs – The average cost of an adult funeral is $7,045 with casket but not including cemetery, monument, flowers and obituary expenses. Source NFDA.org
Why it is Time to Take Another Look at Life Insurance
Average Household Savings – In a study done by the Life Insurance and Market Research Association (LIMRA) and LifeHappens.org, 31% of those polled said that they would feel the financial impact from the death of a primary wage earner in 1 month. Source: 2014 Insurance Barometer Study, Life Happens and LIMRA
Unfortunately, most households don’t have enough saved in case of an emergency. In fact, many households don’t have enough saved to cover basic funeral expenses. Even a small policy will give your loved ones some financial relief if you were to pass away unexpectedly.
Income Replacement – According to a study done by LIMRA, those with life insurance carry enough to replace their income for 3.6 years. Source: Personal –Level Trends in Life Ownership, LIMRA 2011
For those who do have life insurance, many do not have enough. Some people rely on the life insurance coverage they have through an employer sponsored plan which can limit coverage amounts and in most cases is more expensive than an individual policy. If you already have life insurance, it makes sense to review you coverage. There’s a good chance you are underinsured or paying too much.
What Can You Expect to Pay for Term Life Insurance?
Term life insurance rates have never been more affordable. Here are some sample monthly rates from a leading insurance company for 35 year old male and female nonsmoker applicants who qualify for ‘Preferred’ health ratings.
| Male | 20 Years | 25 Years | 30 Years |
|---|---|---|---|
| $250,000 | $17.85 | $24.41 | $26.82 |
| $500,000 | $29.66 | $41.04 | $46.29 |
| $750,000 | $41.69 | $58.76 | $66.63 |
| Female | 20 Years | 25 Years | 30 Years |
|---|---|---|---|
| $250,000 | $15.88 | $20.91 | $22.88 |
| $500,000 | $25.73 | $35.35 | $39.73 |
| $750,000 | $35.79 | $50.23 | $55.08 |
View more sample term life insurance rates.
What If You Have Health Issues?
Another reason why it is a good time to buy life insurance is that life insurance companies have come a long way in underwriting applicants with health issues. Many companies out there will still offer their best health class rates if you are on blood pressure or cholesterol medication but are keeping your levels in check. For more serious conditions such as diabetes, sleep apnea and Crohn’s disease, affordable rates are available as well. As certain medical conditions have become more treatable due to advances in medicine, insurance companies have become a bit more lenient in rating them.
Procrastinating can Cost You and Your Family
Whatever your reason for not buying life insurance might be, you should know that procrastinating could cost you and your family. There are three main reasons why you shouldn’t procrastinate. One – each year you wait your life insurance rates will go up because you are a year older. Two – if your health deteriorates you might find yourself paying much higher rates or even worse, you could become uninsurable. It is not uncommon for someone in their 30’s or 40’s to have a life altering health issue such as a heart attack or cancer. Three – the biggest risk of procrastinating is that you die without ever having purchased coverage. Think about the financial impact that might have on your loved ones.
Now is the Time to Buy Term Life Insurance
Term life insurance has never been more affordable. If you’ve been putting off getting your coverage, now is a great time to buy term life insurance. We shop over 40 of the top life insurance companies to find our clients the best rates for coverage. Get a free quote and see how affordable life insurance can be for you. If you have any questions about life insurance coverage or rates, feel free to give us a call at 888-687-9444 or email us at info@archstoneagency.com.
About Us
Archstone Insurance Services, LLC is an independent agency that shops over 40 of the top life insurance carriers to provide huge savings on life insurance coverage for our clients. We are happy to answer any questions you might have about any of the insurance products we offer, your planning needs or your existing coverage. Feel free to call us directly at (888) 687-9444 or email us at info@archstoneagency.com.
