You’ve thought about life insurance but find that it keeps lingering on your to-do list.
There are several reasons why you may be holding off on completing this important purchase. Read on to see which reasons hold weight and which you might want to reconsider.
- “Life insurance is too expensive.”
Eight out of ten American massively overestimate the cost of life insurance.* Many worry that life insurance may not fit into their monthly budget. But you would probably be surprised to see just how affordable term life insurance can be. The best way to see for yourself is to get an instant, free quote. A no-obligation application only takes a few minutes with Ladder, and if you change your mind, you can cancel without fees or penalties at any time.
- “Life insurance is for older people. I’m young and healthy.”
When you’re young and healthy, the most likely cause of death isn’t illness, it’s being involved in an accident. So if you have people who depend on you, it’s important to have basic life insurance in place to protect your family in case of an unexpected death. An added benefit? Locking in a good rate while you’re young and healthy is a fantastic way to save money long term. When you are young and healthy you are a lower risk to insure, so your monthly price can be much lower compared to someone older than you.
- “I have a life insurance policy through work, so I don’t need more.”
The life insurance coverage you have through work likely covers 1-2 times your annual salary or caps out at a fixed amount, whereas experts recommend carrying at least 10 times your annual salary, depending on your circumstances. Getting more life insurance, on top of what you have from your employer is a smart move because it can move with you, even if you leave your job. If you want to investigate how much coverage makes sense for your family, consider using our free online calculator.
- “ I’ll take care of it later.”
It’s easy to put off getting life insurance, but it’s also important to keep in mind that the older you get, the higher your costs will be. So it’s a good idea to take care of getting life insurance sooner, rather than later, locking in the lowest rate possible. Also, since your health today affects how much you pay, getting it earlier can avoid paying more if your health were to get worse.
- “If nothing happens to me and there’s no payout needed , life insurance is a waste of money.”
Like auto or home insurance, term life insurance isn’t an investment product – it only pays out when there is a claim. This is by design, to make it the most affordable way to mitigate risk and ensure that your family’s financial future is taken care of, if the worst should happen. By not having a cash value or “money back” option on your term life insurance, your costs are far lower than if those bells and whistles were included. Plus, most term life insurance offers a guaranteed level price for the entire term of coverage, locking in the best value while you’re younger and healthier.
6. “It takes too long to get it done.”
This was true, until recently. Today, Ladder is the easy way to get life insurance done. In the old days, getting life insurance in place took months, because of mountains of paperwork, agent meetings and slow decisions. But times have changed. Now, you can get an instant quote, apply for and could get life insurance checked off your list in less than 10 minutes.
- “Stay-at-home parents don’t need life insurance.”
Salary.com estimates the value of a stay-at-home parent’s contributions at almost $115,000 per year. If something were to happen to you, your partner would need to both work and take care of the home at the same time. So he or she would most likely need help with childcare, cleaning, transportation and more. Even if you’re not the breadwinner of the family, getting a policy in place will help your spouse keep the family ecosystem running smoothly in your absence.
- “Ratings of life insurance companies don’t really matter.”
A good life insurance company should have a strong financial rating that makes you feel confident in their ability to honor claims. For instance, Ladder’s policies are issued by Fidelity Security Life Insurance Company, which has been A- rated (Excellent), based on an analysis of financial position and operating performance by A.M. Best Company, an independent analyst of the insurance industry. Further, they are backed by Hannover Life Reinsurance, the third largest reinsurer in the world. Make sure to check who is providing the insurance coverage and what they are rated before committing.
Ready to get life insurance checked off your list?
Step one is to figure out how much coverage you actually need. The easiest way to do this is with a simple and free online calculator. Once you know how much coverage you’re looking at, you can get an instant quote. It only takes a few minutes with Ladder and you’ll likely be surprised by how affordable life insurance can be. Ladder also allows you to cancel, apply for more coverage, or reduce your coverage, whenever you like – without any fees/penalties, mountains of paperwork or agent involvement. If you have any additional questions about your coverage needs, please feel free to contact us. Our goal is to ensure that managing your life insurance is as easy as can be.
*Source: Average Middle Marketing Debt and Retirement Planning (LIMRA, August 2014)