With consumer confidence at a near-record high, Americans are feeling pretty good about their finances. But even with comfortable levels disposable income and more spending, studies show that life insurance remains low on the financial hierarchy.
In a recent survey, 61% of respondents had opted out of life insurance due to other financial priorities.1 However, the stark reality is that with the annual cost of living at over $135,000 for the average family of four,2 your family’s standard of living could quickly disappear should something happen to you (or your spouse for that matter).
If you and your income were gone, how long would your family’s savings last? Could they stay in your home? Would your children need to change schools or reduce activities they enjoy? Could they still afford college?
To ensure your family has the resources they’d need to maintain their lifestyle, consider group life insurance through the Alumni Insurance Program. It’s straightforward coverage with competitive rates, so you may be able to offer your loved ones even more protection than you thought possible.
Many people overestimate the cost of life insurance. In fact, most consumers estimate the cost of coverage at three times its actual cost3. In reality, a healthy 35-year-old woman would pay less than $16 per month for a 20-year, $250,000 policy –just a fraction of the average monthly cell phone bill.
If you do have life insurance, you should review your coverage needs periodically—at least every few years—and particularly when a major life event occurs, such as marriage, birth of a child, or a home purchase. You may need to buy more.
So while life insurance may be a low financial priority, the irony is that it could provide for all of your other priorities should you die unexpectedly.
1 2018 Insurance Barometer Study, LIMRA
2 “What it Costs to Live the American Dream,” Personal Finance News, November 1, 2017