Valentine’s Day is a day when we take the time to celebrate those we love. We buy gifts, we go out to fancy dinners and we look for ways to show our appreciation. It can sometimes be a challenge to think up an original approach your loved ones will really appreciate.
What if you could offer your loved ones something they can use for the rest of their lives?
Life happens. The reality for many is that few of us are prepared for the financial hardships that come with losing a family member. Consider a new direction to showing your love this Valentine’s Day and seek peace of mind by purchasing life insurance for your loved ones.
“The appearance of the U.S. Department of Defense (DoD) visual information does not imply or constitute DoD endorsement.”Top misconceptions about life insurance
The 2022 Life Insurance Barometer Survey tried to find explanations for why people don’t have life insurance, leaving their families at risk for financial difficulty should a family member unexpectedly die. It turns out that many simply don’t understand how life insurance works — what it costs, what it’s good for, whether substitutes are sufficient, or when the best time to buy life insurance is. There were four key misconceptions discovered in the survey:
Life insurance is expensive
Many wildly overestimate the cost of life insurance: 43% of Millennials estimate that life insurance for a healthy 30-year-old would cost $1,000 per year. It actually costs about $170 per year. That means many Millennials believe the cost of life insurance is six times higher than it really is. While it’s understandable that many would prioritize other financial needs because of this misconception, this puts families at risk of great financial hardship if a wage earner were to die unexpectedly.
Workplace life insurance is sufficient
Most employers’ life insurance comes to a flat sum of $20,000 or one year’s salary, which is simply not sufficient for many families. This goes especially for households with dual incomes — and 54% of U.S. households utilize this strategy to stay afloat. This misconception is fairly common: A full 26% of American workers believe their workplace life insurance is enough. This means that 44% of families would face financial hardship within six months and 25% in less than one month.
Buying life insurance is difficult
According to the survey, 54% of uninsured Americans don’t buy life insurance because they don’t know how to figure out the particulars; for example, how much they should buy, or what sort of coverage they need. Additionally, less than one in three respondents claimed they were “very” or “extremely” knowledgeable about life insurance. This uncertainty leads to many putting off taking action on their insurance plans. While working with an agent is an option, a full six in 10 Americans don’t utilize a financial professional when planning out insurance.
You only need life insurance when you’re older
The younger and healthier you are, the less expensive your life insurance tends to be. Putting it off can lead to vastly increased rates. Many insured Americans — about 4 in 10 — wish they had purchased life insurance sooner.
Demonstrate your affection by offering total peace of mind
At AFBA, we’re proud to support the Life Happens Insure Your Love campaign and fully believe in the importance of life insurance. This Valentine’s Day, do something that will leave a lasting, long-term benefit for your loved ones.