February 2, 2024

Spotlight on Life Insurance: Protecting Your Loved Ones’ Financial Future

Ensuring Financial Security and Peace of Mind with Adequate Coverage

Mortgage payments. Utility and grocery bills. College tuition.

Those monthly bills can certainly add up. If the unthinkable should ever happen to you or your family, how can you be sure your surviving beneficiaries, such as your spouse and children, will have the income they’ll need to cover life’s expenses?

You may want to consider a life insurance policy.

Financial security. Peace of mind. Those phrases are often associated with life insurance, which is defined as a contract between an insurer and a policyholder designed to protect beneficiaries from devastating financial losses should the policyholder pass away. If you’ve experienced a key life event, such as buying a home, getting married, having a family, acquiring a business, or even taking a new job, you’ll want to be sure you have a life insurance policy in place that fits your specific situation.

Let’s start with this important question – do you have life insurance? While many businesses offer this benefit to employees who meet certain criteria, the coverage provided by your workplace may not be adequate to offer the financial security your beneficiaries may need, especially if you have a large family or significant financial obligations. In today’s uncertain economy, having just an employer-sponsored life insurance policy may leave you at risk, and here’s why. If you lose your job, you may not be able to take your life insurance benefit with you, leaving you and your family potentially without coverage.

Consider this personal story, shared with BayCoast Insurance.

It’s about a Somerset, Massachusetts man who, while in his early 20s, made the important decision to purchase a separate whole life insurance policy that was not tied to his employment. Recently married, he had a chronic illness and felt it necessary to have the additional coverage. Decades later, after experiencing complications due to his illness, he was no longer able to work, lost his employer-provided life insurance, and did not qualify for life insurance due to his health issues. Sadly, the husband succumbed to his illness, but his widow says she is extremely grateful to have maintained the additional whole life policy for so many years, because it provided financial security for her family during a very difficult time in their lives.

Preventing financial struggles is one of the main reasons to purchase a stand-alone life insurance policy. A recent insurance study suggests that 38% of American households would face monetary hardship within six months should a wage earner die unexpectedly. What’s worse is that 30% of these households would struggle financially within just one month. Additionally, among those who currently hold life insurance policies, 21% say they do not have sufficient coverage.

These are sobering statistics. If life insurance is so important, why are many individuals and families not insured or underinsured? According to a 2023 Insurance Barometer Study, which annually tracks the perceptions, attitudes, and behaviors of adult consumers in the United States, the top reason people give for not purchasing this type of coverage is that they believe it’s too expensive. Yet, about half of all Americans overestimate the cost. Then there’s this – at least 36% of Americans without life insurance say they haven’t purchased a policy because they are unsure of how much they need or what type to buy to suit their needs. Additionally, 28% of consumers say they don’t have life insurance because of other financial obligations.

When it comes to purchasing coverage, gender also plays a role, as 44% of women in this country say they need life insurance but are less likely than men to own a policy. The numbers tell the story – 49% of women report owning a life insurance policy, compared to 55% of men.

That same study suggests that household income also impacts the number of Americans who purchase life insurance. 39% of middle-income Americans say they need or need more life insurance, and only 24 % correctly estimated the cost of a policy.

So what does all this mean?

If you have a question about life insurance, including cost and what type of policy may suit your unique needs, BayCoast Insurance is available to help you. We offer numerous coverage options. Everyone’s situation is different, so we encourage you to contact us. It costs nothing to reach out and talk to one of our trusted team members for guidance.

Remember – we’re here to provide insurance solutions that are Just Right® for you.

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