Millions of American adults have life insurance policies that protect both themselves and their loved ones. when There are many (and they are relatively to protect), millions of other adults do not have life insurance.
“Only 46% of women report owning life insurance, compared to 53% of men,” according to a 2022 LIMRA study. The reasons many people don’t have life insurance vary significantly. They can feel it too much or that The amount is very low. It could also be that they don’t feel the urgency because they already have money saved up.
But is it enough or do you need life insurance even if you have savings? We will explore this question below.
If you’re in the market for life insurance, start by getting a free price quote so you know what to expect.
Do you need life insurance if you have savings?
If you have enough savings you can avoid applying for life insurance. In most cases, however, it is recommended that you take out a policy Here are three reasons why you need life insurance even if you have savings.
You may not have saved enough
You may have thousands, thousands or even six figures stored in the bank. But it may still not be enough compared to what you can get with a life insurance policy. Life insurance payouts range from thousands of dollars to more– the latter of which would be difficult for most adults to preserve in their lifetime.
Consider that many financial advisors recommend having at least 10 times your annual salary in life insurance protection. Do you currently have that amount of money saved up? Or can you realistically save that amount in the near future? If the answer is no, then your savings account is not enough to avoid life insurance.
Get started by getting a free life insurance estimate here to see how much you need.
Your savings may decrease
Even if you have enough savings that you feel comfortable avoiding life insurance that doesn’t mean that security will last forever. If your money is linked to the stock market,or otherwise invested in something over which you have no direct control then it is wise to get life insurance now. There is no way to know what the market will do in the long run or even in the next 12 months. . Plagued by our current economic climate and unequal , it’s smart to spread your risk. Don’t rely on what you saved. Get a life insurance policy and know for sure that you and your loved ones will be protected no matter what happens.
Your financial needs may vary
You may currently have enough money saved that you don’t need life insurance. But that’s it for now. What if your financial needs change? It can be difficult to make an appropriate adjustment of your savings to reflect this new reality.
For example, you may have enough savings for you and your spouse. But what if the child? Or two children? This will significantly change the amount of protection you need, and chances are you won’t make up the difference with savings alone. Likewise, if you’re renting now but decide to take out a mortgage in the future, you’ll want enough to cover that outstanding loan should something happen to you.
In short: savings may be enough for the short term but not enough if your financial needs change. Only life insurance can adequately assist you with such adjustments.
Get a life insurance quote online now or use the table below to start reviewing some options
In rare circumstances, your savings are enough that you don’t need life insurance. But in many other cases, life insurance is a valuable and affordable protection. This is because you may not have enough money saved or, you may, but circumstances beyond your control may reduce those savings in the future. Finally, your financial needs may change with the birth of a child or new financial responsibilities make it so that your savings can no longer adequately protect you. In these examples and more, life insurance is generally recommended even if you have extra money in the bank.