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In 2014, a survey paid for by the New York Life Insurance Company revealed that individual life insurance is at an extremely low level with 44% ownership. In fact, the survey revealed that up to 86% of the participants found life insurance to be expensive and unnecessary so they either were underinsured or not insured at all. Yet all were surprised to find out that their impression of current life insurance rates were bloated three times over!
Life insurance does not have to drain your resources or cost too much to be a burden to your budget. If you want to know more, all you have to do is get an instant online life insurance quote to be assured that you can afford life insurance.
Why Being Underinsured is a Problem
At present, beneficiaries of life insurance policy holders in the United States are covered for an average of 3 years protection against expenses, daily and unexpected, when the ideal length of time is 14 years. This means that many residents are choosing to be underinsured and happy with their purchase because they believe that life insurance is only used to pay for immediate expenses after the death of a policy holder. However, did you know that life insurance can also cover loss of pay and daily expenses?
Other reasons to get sufficient life insurance are:
- If the policy holder is the primary breadwinner, families will suffer drastically
- Life insurance offers cash value.
- Getting life insurance early means very low rates so one can lock in the cheap rates, pay for life insurance, and reap the benefits later on in life
It’s very easy to verify these benefits by checking an instant online life insurance quote on your own at your convenience using the Internet.
Online Processing Speeds the Process
One of the stumbling blocks to life insurance is the tedious process that includes health checks, application forms that go back and forth, and major decisions on coverage. Statistically, the longer it takes to process an insurance policy, the less likely a consumer will end up buying. This is one of the reasons the industry has been able to revive itself by using the Internet. The speed and convenience that the Internet provides eliminates a lot of the processing time and diminishes the amount of information overload common with insurance documents.
The Instant Online Life Insurance Quote
A quick example of how the industry has been able to streamline the processing time is the instant online insurance quotes which delivers quotes in seconds. According to industry experts, more developments and features are expected to be launched by insurance companies such as the number of days it would take to process insurance policies would eventually come down to minutes instead of days. Accessibility will also be improved and as consumers start to buy sufficient life insurance, you might even see the rates start to decrease.
How Much is Sufficient Life Insurance?
Financial experts will give different recommendations but a safe ballpark would be to get life insurance worth at least 10 times your current income but you will also have to factor in your lifestyle and cost of living. If you are currently single but plan to get married in a few years, you might want to increase that amount. On the other hand, if you want life insurance that will cover the family 14 years after death, you should increase the amount to 20 times your current income. With the convenience of the instant online life insurance quote, it fairly easy to get the cost per annum for a specific coverage.
Fortunately, life insurance rates do not fluctuate as wildly as health insurance so you can be assured, more or less, of consistent rates over the next few years.
Tips on Buying Sufficient Life Insurance
- Calculate your current monthly cost of living plus the extras to determine how much your family needs to get by using just the death benefit. Don’t forget to calculate cost of education, mortgage, and emergency savings.
- Don’t be frazzled by the large numbers. Instead divide the amount by your current income and see how many years that would cover. In many cases, people are surprised that $500,000 doesn’t really cover more than 6 years based on an annual salary of $80,000.
Finally, let someone mature, responsible, and trustworthy in your family know about your life insurance so when the time comes, someone can handle it for you and make sure your family is well taken care of.
