In these challenging and turbulent economic times, some Americans are letting their life insurance policies lapse or delaying purchasing coverage in order to save money. Going without life insurance puts your family and loved ones in a difficult financial situation in the event of your death. Without life insurance benefits, many families may be forced out of their homes, children would have to pass on attending college, and surviving spouses would have to return to work to make up for the loss of household income and make ends meet. For a single parent, leaving behind children without life insurance benefits could have devastating consequences.
Is that the position you want to leave your family? Here are some other reasons to carry life insurance, even in tough financial times.
Your health can change overnight and dramatically affect your life insurance options. Many people feel since they are young and healthy, they have no reason to purchase life insurance. But that couldn't be further from the truth, and in fact, the opposite is true. The best time to purchase life insurance is while you are healthy, since you will have access to the lowest rates and the best possible benefits. A diagnosis of heart disease, diabetes, or another type of illness can prevent you from getting life insurance at any price or greatly increase the amount you will pay if you are able to secure a policy. The time to act on life insurance is now, not later.
Before you let your life insurance policy lapse or put off buying coverage, make sure you know all your options. Contact your agent first and discuss modifying your existing policy to lower your premiums or discuss other ways to save money while keeping your coverage. It may be possible to convert your whole life insurance policy or buy a term life insurance policy, which is the least expensive form of life insurance and protects you for a specified period of time, or 'term,' rather than for the rest of your life. Another option may be to purchase accidental death insurance. In short, it's better to have some life insurance, even if it's less than you had before, than to have none at all.