COVID-19 may have a silver lining in its black clouds, despite the destruction the epidemic has inflicted in the last year. As the realities of mortality and financial well-being have become more apparent, more individuals are turning to life insurance to safeguard their loved ones.
As of 2011, only 11% said they were more inclined to get life insurance, but now 31% think that they are more likely to do so.(* According to a prevalent myth that continues, most individuals underestimate the cost of life insurance by as much as three times what it really costs. This misunderstanding, coupled with a proclivity to put other financial demands ahead of funeral expenses, leaves far too many families open to financial ruin in the event of the untimely death of a loved one.
Many people find term insurance to be an appealing alternative to either permanent or whole life insurance because of its lower cost. With term insurance, families can afford to ensure that even if a family income earner dies, they will be able to maintain their standard of living and keep their ambitions within their grasp thanks to term insurance.
Purchasing term life insurance is now more convenient than it was in the past due to the increased ease of access and quickness. Many organizations have increased their online tools and resources to provide an expedited application process, speedier underwriting, and more efficient application processing.
The foundation of a long-term financial strategy might also include term insurance. At the same time, it can guarantee that you will be able to get insurance in the future and that you will be able to pay for it.
A deeper examination of the advantages of a term life insurance policy reveals three that stand out.
Changes to one’s health may provide protection. A person’s health is more likely to deteriorate as they become older, increasing the cost of their life insurance or potentially excluding them from coverage altogether. In many cases, a policyholder may switch their term life insurance to a permanent policy before it expires without having to undergo another medical test, even if their health has changed. It’s a good idea to be able to lock in your insurability now so that you don’t have to worry about your health changes in the future.
Occupational safety nets Following the pandemic, 10% of employees were left without life insurance coverage from their employers. Employer-provided group coverage isn’t enough protection for many people, even those who are covered by optional term life policies paid for by the employees themselves. It is best to have both individual and employer-sponsored coverage, but term insurance provides better protection and greater security in the event of job loss.
financial safety net against debt and ultimate costs. Mortgage and non-mortgage debt in the United States presently total $14.35 trillion. If you or a loved one has a life insurance policy, it may be possible for them to pay off their obligations, maintain their standard of living, and pursue their aspirations.