5 Reasons Life Insurance Makes Sense Right Now

The facts about life insurance—from the costs of premiums to the amount of coverage recommended—are often misunderstood. Here are five reasons why a policy is a smart investment.

1.     Life insurance is affordable.

The 2021 Insurance Barometer Study, the 11th edition of the annual research survey by Life Happens and LIMRA, revealed that 81% of people cited “too expensive” as a reason for not owning a life insurance policy. Forty-four percent of millennials said they thought the cost of a policy was $1,000+ per year.

In reality, a simple term life insurance tends to offer low and more flexible premiums compared with other kinds of insurance. The younger and healthier you are when you buy your coverage, the less expensive the policy will be. As you age, you can always choose to expand your coverage.

2.     Life insurance can be purchased even when you’re young and healthy.

It’s unlikely that you’d need your life insurance as a young, healthy person, in the statistical sense that you’re less likely to get sick and pass away. However, life insurance is typically less expensive and easier to get, the younger and healthier you are.

If you wait until you are chronically or terminally ill, you may find your ability to purchase insurance to be much more limited.

3.     The life insurance offered through your employer may not be enough.

Despite your monthly premium expense, the amount of life insurance coverage you get through your workplace may not be sufficient to provide for your loved ones should something unfortunate happen to you.

In addition, it’s often tied to your employment, which means that if you change jobs, you may lose that insurance.

4.     Life insurance can do more for your heirs than you think.

The simplest kind of life insurance—term life insurance—is mainly intended to be used by your heirs after you pass away. However, more complete types of coverage, such as whole life and universal life insurance, can be used in various ways during your lifetime—as collateral on a loan, for example, or to fund long-term care. Or, for certain types of policies, you can convert them into cash.

5.     If you have a preexisting condition, you can still get life insurance.

Though it could be an obstacle, having a preexisting condition doesn’t automatically mean you won’t be able to buy life insurance. Consult with a licensed insurance agent about policies that may not require a medical exam as well as about life insurance designed for people with specific preexisting conditions, such as cancer and diabetes. An experienced professional can help you find the best life insurance for your specific needs.

AAA Life Insurance Company is licensed in all states except NY. Life insurance underwritten by our affiliate, AAA Life Insurance Company, Livonia, MI. Products and features may vary by state. AAA Life and its agents do not provide legal or tax advice. Therefore, you may wish to consult an independent legal or tax professional prior to the purchase of any contract. ALAN-28550-N22-XX