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42% Of American Households Struggle Financially Without Life Insurance



Life Insurance can sometimes seem complex and confusing. Countless of people understand what Life Insurance is but they believe they don't have a need for a policy. As a result, many financial providers in a family prolong applying for Life Insurance, or worse, refuse to get a policy.

A recent study from Limra Research revealed that 42% of American households found it challenging to pay their living expenses (rent, mortgage, groceries, education etc.) within 6 months of the death of their family’s sole financial provider. This was mostly due to families not having a Life Insurance policy.


While the study from Limra was conducted in the United States, this is also growing concern on an international basis. Families all around the world without Life Insurance are struggling to cope financially after the death of their sole provider. This is because they are lacking income protection.

In this article, we will cover some of core benefits of income protection when purchasing a Life Insurance policy and answer general hesitations behind purchasing a policy.

Primary Benefits of Income Protection from a Life Insurance Policy

Secure Your Family’s Financial Future

For the majority of the population in the world, the primary benefit of purchasing Life Insurance can be summed up into one key point: to financially secure and protect your family with income protection.


It goes without saying that every parent desires for their spouse and child to be taken care of if they were to pass away. Buying Life Insurance may help to guarantee that your family will not suffer financially in your absence. Although there is no replacement for your treasured family members, Life Insurance can assist in aiding your family’s financial security. Without your income, your family may not be able to afford their mortgage, rent or cover their daily expenses. The benefits from your policy can help to cover these mandatory costs.

Life Insurance is just as important if you are a stay-at-home parent. Your life is valued through your hard work at home. Although you are irreplaceable as a stay-at-home parent, your spouse would have the financial resources to pay for home care services in the event of an unexpected death.

Long-Term Financial Planning

By purchasing a Life Insurance policy, you are investing in your long-term financial goals. But how much Life Insurance do you need to purchase? Life Insurance benefits are intended to replace the income that you are providing for your family. Although, the exact details depend on your financial circumstances, there are still some general factors to consider when calculating how much coverage to purchase:

  • Your financial contributions (salary)

  • The cost of your children’s education

  • The cost of childcare

  • The cost of your rent or mortgage

  • The general expenses for your family such as household expenditures and bills



Reduce Stress Load

When a family member passes away, it is a time of emotional burden. This painful period can prove to be more challenging in the circumstance of replacing income and paying bills.

Although, a Life Insurance policy will not solve all your family’s obstacles, it will ease the process of them getting back on their feet. With the ability to cover expenses, it will give your family the time they need to recover from their loss.


Purchasing Life Insurance does not only reduce the beneficiary’s stress load at the time of claim. There are also many benefits from a Life Insurance policy that begin at the time of purchase:

  1. Some policies offer riders such as critical illness benefits or accelerated benefits.

  2. When purchasing a Life Insurance policy, you allocate capital for your future financial planning. This in turn, allows you to freely invest your money now and gain substantial profits.

  3. The most important living benefit from purchasing Life Insurance is the peace of mind that you will obtain from knowing that you have an income security plan in action.


When Is the Best Time To Buy Life Insurance

So, when is the best time to buy Life Insurance? The answer is simple, Now! There are two major factors that determine a premium: Age and Health. The fact is you will never be as young tomorrow as you are today and, in most cases, you are healthier today then you will be 5 years.



Common Concerns Before Purchasing a Life Insurance Policy

  • I already have Life Insurance through my company: While this might be the case, the benefits might not be sufficient enough to cover your family after your passing. Furthermore, if you leave the company, the policy may not be continued.

  • Life Insurance is too expensive: Insurance companies have hundreds of plans available to cater to your budget. If you are a young and healthy individual, there is an affordable premium out there just for you.

  • I don’t really understand what Life Insurance is: Purchasing Life Insurance can be confusing. Insurance companies have advisors who are ready to help and walk you through finding a policy that best fits your needs.

  • I would rather invest my money into my savings: Life Insurance should not be seen as a part of your retirement plan. Life Insurance is a crucial factor in providing security for your family. Yet at the same time there are Life Insurance savings solutions available to help you plan for the future in an uncorrelated asset class.

Apeiron believes that if you are a parent or a partner, it is essential to buy a sufficient Life Insurance policy to protect your family.

References:

You know you need it. let's talk about life insurance. LIMRA.com. (n.d.). Retrieved January 6, 2022, from https://www.limra.com/en/newsroom/industry-trends/2021/you-know-you-need-it.-lets-talk-about-life-insurance/