You’ve probably heard a version of the proverbial saying: “nothing is certain except death and taxes.” And we all know, as unpleasant as both are, they are inevitable. That’s why it was surprising when a recent study revealed that only 44 percent of all American households have life insurance—the key financial security to protect loved ones if a primary bread winner dies. According to a LIMR study, Facts About Life (September 2010), of those that have life insurance, half say they don’t have enough to adequately support their loved ones if they died.
Since death is certain, why doesn’t every American household have enough life insurance? Here are the primary reasons concluded in this same study:
- Families have other financial priorities, such as paying off debt, saving for college education or retirement, and the struggling economy has made finances worse.
- While most agree life insurance is the best way to protect against the death of a primary bread-winner, many procrastinate doing something about it because they don’t know where to go for help or they just don’t want to think about their own mortality.
- About 25% of households rely only on group or employer-provided life insurance. This type of coverage often limits the amount of benefits available, which leaves many employees underinsured.
- Most families need about seven to ten times the amount of the primary breadwinner’s take-home pay to cover needed expenses.
- Americans want professional help but they don’t know where to buy it or who to turn to help them.
Almost eight in ten American households currently do not have a personal life insurance agent or broker to turn to and most of them say they never did, per the LIMR study.
So if you don’t have any life insurance or know you need more but you’re concerned about the economy and affordability of it, what can you do?
Many Americans who need affordable life insurance generally purchase Term Life Insurance. Term Life Insurance is one of the least expensive types of life insurance in the market. It provides a lump sum death benefit when the insured dies.
Term Life Insurance can be offered in different term options—from yearly renewable term to 10, 15, and 20 or even longer periods. This makes it easy and flexible to tailor to your family’s budget and personal needs.
Plus, it offers ideal coverage that can be used to supplement employer-provided or other coverage you already have or it can be used as your primary source of coverage.
The AIA Trust offers several term life insurance plans, all through New York Life Insurance Company, an A++ rated company by AM Best. Through this partnership, the AIA Trust is able to provide you with excellent protection at affordable group rates. However, someone in perfect health can generally buy life insurance in the open market for less than through an “Association Plan.” This is because association plans, while underwritten, do not typically tier rates based on health issues.
The AIA Trust plan has a three tier rating system (Preferred, Select and Standard)—whereas other carriers selling individual term life may have as many as ten to fifteen tiers. However, because not everyone qualifies for the most favorable rates, a group plan is still beneficial to offer to the majority of members. For those members who do qualify for the best individual rates, they may find rates to be better than even the “Preferred” AIA Trust group rates.
If you’ve been procrastinating buying life insurance (or buying more of it) and don’t have a personal agent to help you, consider contacting a life insurance “buying service.” A “buying service” by its definition is just that—a service that “shops” the market to find the best deal for you. It saves you the time and money it would take for you to shop on your own for coverage.
Plus, buying services are becoming more popular because they offer these advantages:
Flexible coverage: The buying service will work with you to develop a plan—whether you already have coverage through your employer or other source and just need more. Or whether you don’t have any coverage and you’re starting from scratch.
Objective advice and guidance: Most services aren’t tied to one specific insurance company or group of benefits so they’re able to offer you the best advice and guidance based on your personal situation, needs and budget.
Convenient and expert shopping: The service does all the legwork by reviewing insurance carriers, benefit options and rates for you. Usually they only work with reliable, top-rated insurance carriers. This saves you the time from having to find the best and most stable provider on your own.
Portability: When you purchase coverage through a buying service, you can take it with you if you leave your current employer. This is unlike employer-provided coverage that usually ends when you terminate employment.
Hassle-free process: You can easily find a buying service online or through a print or TV advertisement. With just a simple phone call or a couple clicks online, you can request no-obligation information. Then, if you decide to buy, there is little paperwork to complete because most of it is handled over the phone or online.
A buying service enables you to avoid the high-pressure sales of face-to-face meetings with insurance agents.
The bottom line is to make sure you have enough life insurance for your loved ones in case something happens to you—and to find a resource you can trust to provide this important financial security for you and your family.
Visit theaiatrust.com to find out more—or call 1-877-801-3727.