Generation X in Serious Need of Life Insurance
The lack of life insurance in American households has been an issue for many years, but usually, the individuals who seem to need the biggest boost in coverage are younger individuals. A survey released this week, however, shows the older Generation X population is lacking the coverage it needs as well, largely due to their belief that they cannot find affordable life insurance that wonâ€™t eclipse other expenses.
Middle-Aged Americans Overlook Life Insurance
New York Life released a study on Thursday revealing that Americans born from 1965 through 1976 — also known as Generation X — reported life insurance needs almost $449,000 greater than what their current coverage provides.
Even more astounding was the number of people going without coverage entirely. According to New York Life, 20 percent of Generation Xers reported having zero life insurance. This is up from 5 percent of the population who claimed to not have coverage in 2008.
The reason for the large gap in coverage, as well as the increase in Gen Xers without any form of life insurance, has very much to do with the economy, according to the company. The 2008 financial crisis, which left many feeling financially unstable, resulted in the decision to cut expenses.
â€œWhen youâ€™re hurting for every discretionary dollar, this is one thing people can justify (cutting),â€ Chris Blunt, president of the insurance group at New York Life, told USA Today.
How to Find Affordable Life Insurance
One misconception many Americans of all ages have about life insurance is that it falls out of their price range. On the contrary, finding affordable life insurance is far easier than people think, especially when considering the following tips:
- Start shopping: The key to locating and securing affordable life insurance rests with a personâ€™s willingness to begin shopping for coverage. The LIFE Foundation and LIMRA shared in 2012 that coverage for a $250,000 term life insurance policy can cost as little as $12.50 per month.
- Shop with multiple insurers: When shopping for coverage, donâ€™t stick with the first insurer you contact. Shop around with different insurers to see what perks and coverage options are offered to make sure youâ€™re finding a deal the best suits your personal circumstances.
- Use your affiliations and financial institutions: If you belong to associations, clubs or organizations, check to see if they are linked to insurance companies that offer discounts for coverage. Also, inquire with your bank or credit union to learn about any insurance affiliations it may have that could save you money.
One of the greatest gifts you could possibly give your loved ones is financial stability. If you have been deterred by the cost of life insurance and have yet to purchase a policy, now is the time to begin searching for coverage that could help your family live on without the financial concerns often associated with a life lost.
Image courtesy of Stuart Miles / FreeDigitalPhotos.net