Here's how 59% of Americans endanger their loved ones' financial future – Motley Fool

If you have a spouse or a child, you will probably have nothing more than to care for them and protect them. However, if you do not have life insurance, you do nothing to make sure they are taken care of in case you get too early.

Only 41% of Americans have life insurance, according to a survey released earlier this year by Financial Services firm Edward Jones. Furthermore, 32% say that life insurance is low or non-existent on its list of priorities when starting a family.

If you are without life insurance, you know this : Without a policy, your loved ones can remain shut up if you were to go unexpectedly, and you do not need to be rich in need of life insurance, you just need to have people who depend on you financially, or who are financially harmed. If you were to pass. With that in mind, here are some extra things you should know about life insurance.

1[ads1]. Term life is more cost-effective than permanent life

Life insurance falls into two main categories: As the name suggests, the term life insurance covers For a certain period of time – usually 20 or 30 years – Permanent life insurance, on the other hand, covers you until you die, Permanent life insurance is therefore far more expensive than the term life, since it provides a greater degree of protection.

But that Doesn't mean you need a permanent life insurance policy. If you are married to children, you can decide that you will be covered by retirement age, where your child will grow and grow by himself, and your spouse is entitled to social security benefits in combination with access to the IRA or 401 (k). . If so, a concept's life policy may be more sensible, especially if it saves money on premium costs along the way.

2. Permanent life insurance can double as long-term savings

Unlike life insurance concepts, durable life policies collect a cash value that you pay into them. So, they can double as a kind of savings mechanism. That's because you get the opportunity to pay out the rules later in life if you choose it. When you do, you will surrender your death advantage, but you can decide at a certain time in your life that you want the money immediately and with a permanent life policy you will have the opportunity to do just that.

3. Just because you're not working doesn't mean you don't need life insurance.

Many people believe that if they don't actually earn, it's not necessary for them to get life insurance. However, if you are a stay-at-home parent, you should strongly reconsider. Even if you do not earn an actual income, the fact that you care for your children so that the spouse can work is an economic value. Or to put it another way, if you were to pass away, your spouse would need to absorb the exorbitant cost of childcare without help. And it's not a burden you will want to leave your family with.

4. You can take steps to keep your prizes more affordable

Many people assume that life insurance is prohibitively expensive, but there are things you can do to keep your premiums affordable. First apply when you are relatively young and in good health. Next, as mentioned earlier, you choose term life over permanent life. In addition, do not convince coverage. You probably don't need a $ 2 million policy if you're the only breadwinner in your family and earn $ 60,000 a year. Rather, a policy one-third of that size can help your family pretty well.

The longer you go without life insurance, the more you put the family at risk. If you don't have a policy in place, take some time to explore your options.