How and Why Americans Buy Life Insurance

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Life insurance is an expensive investment that isn’t always a priority if you have limited disposable income. If you’re looking for life insurance advice, it can be hard to navigate all of the details. If you get too overwhelmed it might seem easier to just skip it. People also avoid purchasing life insurance because they think it’s more expensive than it is. A recent study found that American consumers believe health insurance costs three times the actual price.

If you don’t know a lot about it, or want to know more, like how to find life insurance and how to find a good insurance agent, keep reading to learn about some of the benefits of getting life insurance. These facts are courtesy of the Life Insurance and Market Research Association (LIMRA) and are intended to give you a brief overview of the benefits and drawbacks.

  • Life insurance isn’t always a top priority
    More than eight in ten Americans don’t purchase more life insurance because the cost is too high, and many don’t purchase it at all. Other financial priorities are ranked as being more important for many people, and the top ones include everyday costs, like utilities, mortgages, and food, and saving money for retirement. Life insurance is meant to protect your family in situations like premature death, funeral expenses, and leaving an inheritance, and many Americans didn’t even rank these as priorities at all.
  • Why consumers purchase life insurance
    Over 40% of life insurance purchases are event related, and people don’t often purchase life insurance if they’re not prompted to by an unexpected event. Getting married, having children, or buying a house are some of the top reasons people decide to invest in life insurance. When it’s suggested by a financial advisor or in advertising, people are more likely to consider it.
  • How consumers buy life insurance
    Most people like to talk to an agent in person before they commit to a purchase, and fewer than 20% of people want to make the purchase online without meeting someone. It’s a good idea to do your own research online before you talk to an agent so you have a good idea of what you want.
  • Where people buy life insurance
    Lots of people buy life insurance through the workplace — about two in ten policy holders say they think buying it from their employer is the best option. One third of Americans who prefer to buy insurance through their employer say this is a good option because it’s convenient. Other reported reasons for going through a job is to get a cheaper rate, because consumers trust their employers, and because it’s easy to have the cost automatically deducted from a paycheck.

Do you have any life insurance advice? Do you have life insurance or did you decide to skip it because you’re on a limited budget? Have you ever tried to find life insurance policies and were either successful or got stressed out and gave up? If you have any experience with life insurance or have any life insurance advice for people who are considering investing in it, please leave a comment below and share your thoughts. More research here.

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