Wednesday, March 21, 2012

Number of Uninsured in Regards to Life Insurance

Did you know that around 50% of the American population does not have life insurance? That is a high number of uninsured in such a developed country. Additionally 80% of the people that do have life insurance do not have enough coverage. So why is this is so? I have a few ideas:

1. The economy has been in recession and very contracted over the past few years. Disposable income is way down and unemployment is very high

2. Another reason is that there are not enough good and caring insurance agents out there and most people just don't get approached about coverage.

3. Insurance is a back burner issue in our lives. I am in the industry and find myself guilty of the same thing, putting off my insurance needs because in my mind I am too busy today.

4. People assume that they cannot afford life insurance or that it is expensive. This is usually not the case, a good term life insurance policy can be very affordable and some coverage is definitely better than none.

5. There are just not that many sources of good educational materials out there. The insurance industry needs better sources for consumers to go to get educated on the products and find a policy that is best for them. One good organization is the Life Foundation, a not for profit insurance education foundation, their website is
(make sure you check out their life calculator that will help you determine how much life insurance you should purchase.)

So ask yourself:

What would happen if I became disabled and could not work? How would I pay my bills. Does my employer offer disability insurance, if so how much will it pay and for how long?

What would happen if I got cancer, a heart attack, multiple sclerosis or any other form of critical illness and get $25,000 hospital bill that was not covered by my health insurance? ( A very common scenario by the way, the #1 cause of foreclosures and bankruptcy filings in the US are from the same types of medical emergencies.)Do I or my employer have an critical illness insurance or plan for this?

What would happen if I could no longer perform the activities of daily life? If I could no longer move myself, dress, feed, bathe, or use the bathroom without assistance how would I pay for this care? Medicare and traditional health insurance does not cover non-healing care of this type. Medicaid will step in, but only after you spend down your savings and assets to levels below their qualification standard. So do I or my employer have a plan of long term care insurance?

What would happen if I died? How would my loved ones be able to continue without me? Is my debt resolved? Is my lost income replaced? Will my family have to deal with estate tax? How much life insurance do I have through work or on a personal basis?

These are all scenarios that can we can protect ourselves and loved ones against. There is never a perfect time or economy to buy. Insurance can be inexpensive and tailored to your needs and budget. You can use our website as resource to help answer any of your questions. If that is not enough email me at I will help you without obligation.