Anyone can lack an appropriate form of life insurance; however, there are seven groups that are most likely to lack life insurance or are typically under-insured. Discussed herewith who they are and why they typically skimp on the issue.
Single parents
Most people falling in the category of “single parents” are typically uninsured or under insured, thinking that investing in a life insurance demands two things that they hardly have – time and money. While they tend to save money in the short run without investing in insurance, their kids possess the risk of having no means of financial support on their death.
Stay-at-home parents
According to a research, stay-at-home parents contribute almost $112, 962 annually in the form of home maintenance, child care, transportation, cleaning, cooking, and others. Hence, they expect that life insurance should cover the cost if the parent passes away prematurely. On getting one that fulfills their needs, they often stay away from investing in life insurance.
Parents who both work
When both the parents work, one who makes less money often tends to restrain from contributing more to the family, say, by investing in life insurance.
Business owners
Typically, new business owners stay away from investing in life insurance considering that they don’t have sufficient money available. It may even be the case that the business owner has bought “enough” insurance at one time, and since then, the business has grown but the insurance amount hasn’t.
Home owners
Being uninsured or under insured is a typical feature that is found among home owners. They either feel they don’t have time or money to invest, or simply cannot foresee the catastrophe if the home loan buyer dies and there is no money to pay off the mortgage.
People who have group life insurance
People who enjoy group life insurance from the employer are often among the ones not to have their individual insurance or for their family members. They develop a false sense of security, despite of understanding the fact the employer can terminate such benefits anytime, or the coverage amount may not be sufficient enough.
People with history of minor health issues
Many people misunderstands life insurance with health insurance, thinking that they would not be eligible for such benefits if they high cholesterol or high blood pressure. On the contrary, unless health concerns are most serious, life insurance can be bought at affordable rates.
