Life insurance is a type of insurance that most Americans are familiar with. If someone has it, their family will receive a certain amount of compensation (based on the policy) if that person passes away.
Of course, every policy has certain terms and conditions; however, insurance can provide essential financial relief to families who have lost significant income as a result of someone’s death. Unfortunately, not nearly enough people have insurance — or even think that they need it, which is why September has been designated as National Life Insurance Awareness Month.
The following are a few insurance statistics that you should be familiar with:
- On average, most Americans who do have insurance are only covered for 3.5 times their annual income.
- Experts believe that you need at least 10 times your annual income in insurance coverage.
- 40 percent of Americans do not have life insurance.
- Most Americans with life insurance receive it through their employer. As little as 35 percent of American adults have individual insurance.
- 600,000 Americans die prematurely every year.
Why Get Insured?
The biggest mistake American adults make is thinking that they do not need insurance because they are healthy and young. However, being healthy and young is the best time to get insurance because your rates will be at their lowest. Not to mention that there’s no guarantee that you’ll live until old age. It’s estimated that there’s around a 20 percent chance that 25-year-old males will die before they reach retirement age. For women, the odds are slimmer but still there at around 11 percent.
Without insurance, your family won’t receive any benefits if you were to pass. If you are the primary (or even one of the primary) earners in your family, they may find themselves in significant financial distress without your income. Insurance can help ensure that they do not have to deal with financial hardship on top of mourning your loss.
If you don’t have life insurance coverage in California, you should strongly consider getting it. For more information about life insurance or health insurance in general, be sure to visit us at The Benefits Store today.