Everyone knows why life insurance is important, but many of us choose to ignore the reality of what would happen if we were to die suddenly without proper protection. The results could be devastating for your surviving family members, leaving them with a large bill for your final expenses, or even worse, loss of the family home because they can no longer cover the mortgage.
If you don’t currently have a life insurance policy, you are not alone. According to Life Insurance Statistics and Facts, which is a report put out by the life insurance industry, about 43% of the population don’t own a life insurance policy in any amount.
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Unfortunately, the study found that most of us are in desperate need of a life insurance policy. Nearly 1/3 of Americans would feel the loss of the primary earner in the household within the month.
We gathered a few stories to highlight the importance of life insurance. While these stories are fictional, they are based on very common situations.
Mary and Steve have a 24-year-old daughter named Amy who took out $150,000 in private student loans to fund her law school degree. Her parents co-signed the loans, wanting to give Amy a shot at her dream career.
Amy graduated from law school, joined a great law firm, had a baby and started paying off her student loans. When she died at the age of 34 from breast cancer her parents suddenly became responsible for about $120,000 (the balance on her loans) and their 2-year-old granddaughter.
Because they co-signed the loans, Mary and Steve were responsible for repaying the loan balance. In some cases, the loan documents may include an acceleration clause that will bring the entire balance due at death. Mary and Steve could not afford to pay off the loan and had to sell their own home to settle their daughter’s debt.
While no parent ever wants to take out a life insurance policy on their own child, if you have co-signed their loans, and paying off the balance of those loans would be financially devastating; a life insurance policy can protect you from financial ruin.
A 30-year term life insurance policy on a 25-year-old woman (Amy’s age when she graduated from law school) would be very affordable and would have saved the day for Mary, Steve and their granddaughter.
For more information, please contact me. I will be happy to help with whatever questions you have. www.rgwealthsolutions.com +6011-51565649
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