According to the Insurance Library, recent life insurance information reveals that the average payout for a life insurance policy is under 90,000 dollars. Even larger life insurance policies seldom pay out more than 200,000 dollars. While such policies can be just fine for elderly people who are not supporting families, these policies are far too meager for anyone who is supporting a family, regardless of his or her current income level.
While nobody likes to think about life insurance information, it is something that must be considered, especially for parents with young children. Protecting their families is the primary reason that 60 percent of Americans end up buying term life insurance. Clearly, the majority of Americans are smart enough to realize their families could end up in difficult financial straits if they were to die.
Unfortunately, 40 percent of Americans do not carry life insurance, and more than 50 million of those who do have less than adequate life insurance. The fact is, in the event of an unexpected death, 90,000 dollars does not go very far. First of all, the average cost to cover funeral expenses is around 10,000 dollars. Depending upon the choice of funeral home, services, and burial accouterments, the cost can easy run two or three times that amount.
Of course, for individuals with families, the remaining 70,000 or 80,000 dollars will not make up for the loss of household income. So how do families afford to survive after the death of a financial provider? It is often necessary for the surviving parent to take work two or three jobs, borrow money, drain their savings accounts, and move into smaller, more affordable housing.
When you consider all of the things people are risking by not purchasing life insurance, nobody should have to think twice before deciding to get life insurance. Now that all the major companies provide all the life insurance you need online, it is easier than ever to purchase life insurance online, as well. It is simply a matter of taking the time to compare life insurance online programs, and deciding which ones offers the best rate to meet the needs of your family.
Obviously, it is impossible to know when you will need life insurance, but the time will come. And when it does, your family will find itself in a more stable position, because you made the wise choice to invest in a solid life insurance policy.