Talking about life insurance for most individuals is not very pleasing and interesting. Not many realize that ignoring this important topic can in fact enhance a family tragedy by transforming it into a fiscal nightmare A survey conducted recently by LIFE Foundation, a nonprofit organization, showed that a quarter of the Americans may think of canceling their life insurance policy to be able to save cash especially during times of financial recession.
Before coming to any such conclusion, consider all the various aspects of life insurance products and you may even want to purchase more insurance. Many individuals think that they have enough insurance. A survey conducted in middle-income American homes, by Allstate found that most respondents believed that people should have some amount of life insurance. Most of them wanted bills and funeral expenses to be covered. Just about 20 % felt that life insurance should restore the policy holder’s income once he is no more to be able to support dependent family and children. In fact the concept of getting a life insurance policy which paid 7 to 10 times of the policy holder’s salary was not taken well by the respondents.
There are about one in three American adults who don’t have life insurance, according to Insurance Information Institute, chief economist, Steven Weisbart. While the remaining individuals just own insurance that is available in their workplace. Typically such policies are not enough for individuals who will like to support their dependents after death.
Life insurance is a topic not many people like to really think about to some extent, because thoughts about death are uncomfortable. It is true that life insurance is not needed in the manner auto insurance. According to Weisbart it is more of a moral requirement, as with dependents, a person owes it to look after them when they are not there.
Traditionally several individuals depended on the standard of seven times income statute to gauge the insurance they required. This may not be very useful as different people have different situations. An individual who is single with no dependents will most likely require less insurance as compared to a person with five children. It is best to sit down and think about your needs.
If required it is possible to take advise from financial and insurance advisors to come up with the right value. Many clients are not clear about life insurance and this offers a chance for financial and insurance advisors to address this critical part of financial planning.
