How Financial Hardship is Impacting Life Insurance in 2022
October 11, 2022
Financial hardship affects many people, making it challenging to consider life insurance a possibility. Many Americans feel a lot of stress with anxieties ranging from health to family or finances. Many people experience increased anxiety over income and spending as the economy does poorly. As a solution, many change their spending habits to account for the financial strain. They often reduce discretionary spending, postpone vacations, and cancel memberships or subscriptions. Financial hardship also impacts essential purchases, like life insurance. Tough decisions are a part of financial hardship and stress, but insurance policies don’t need to be the area to cut back on.
The Struggle to Purchase Life Insurance
Young and middle-aged Americans often put planning for the future out of their mind. While they are young and healthy, the focus is usually on getting a career going, starting a family, or buying a new home. When things get financially tricky, the priorities are paying for groceries, keeping gas in the car, or keeping enough in the savings account for an emergency. The struggle to think about end-of-life issues is partly because of the discomfort it brings but also because it seems such a long way off. Life insurance costs can seem too high when there is a struggle to pay for everyday essentials.
The Different Types of Life Insurance
Even if it’s just a little, everyone needs to invest in end-of-life needs. The ability to prevent financial hardship on a spouse or family members is a great motivation, mainly when times are already tough. Certain types of life insurance could support their financial goals.
Term Life Insurance
A term policy is often the most affordable insurance. The policy covers a specific length of time. If the individual doesn’t pass away within the time frame listed on the policy, the policy can expire. Then, you would need to purchase a new one. No one gets a payout if the policy expires before death.
Permanent Life Insurance
There are several options under the permanent life category of insurance. The agent will write these policies to last a lifetime and, over time, build up a cash value component. These policies allow the owner to borrow or withdraw against the cash value if there is a financial need.
Group life insurance is a policy typically offered through employers or a labor organization. The coverage lasts until the employee or company terminates employment. It works on a year-to-year contract basis. Life insurance rates under this plan are highly affordable, as the employer covers a significant portion of the cost. However the coverage is not portable and terminates when you leave.
Life insurance is financial peace of mind, despite the perception that it’s unnecessary immediately or too expensive. There are several policies to choose from to make it more affordable.
About 1891 Financial Life
At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.