Life insurance is a tool that can help individuals ensure their loved ones and beneficiaries are well-cared for after their death. However, a sizable number of Americans put off purchasing life insurance until "the right time."
As a recent U.S. News and World Report article points out, the right time is always immediately, as delaying purchasing a policy can put survivors' finances in jeopardy. Policy benefits can be used to cover the costs of education, paying off a mortgage, funeral costs and day-to-day living needs. While most Americans understand the importance of this type of coverage, a 2011 poll shows that it is also considered dispensible by most individuals.
The study, conducted jointly by MSN Money and Insurance.com in 2011, reveals that this type of coverage is often the first to be cancelled when households fall on tough economic times and want to save money. According to the study, 39 percent of respondents said they would cancel life insurance, followed by 13 percent of participants who said auto insurance would be the first type of coverage they eliminated.
The insurance marketing agency noted the most common reasons many Americans, most of which center around the hope and belief that they have more time. Even so, those who purchase life insurance at a younger age may enjoy lower premiums than those who wait until they are older. For this reason, industry professionals are encouraging adults of all ages to explore their life insurance options.
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