When you’re a 30-something with a spouse and children, it’s easy to switch on your tunnel vision and focus only on what’s in front of you. But what about the unpredictable events that could derail your family’s future?
It’s important to find a way to replace your income, which is exactly the purpose of carrying life insurance. Still, fewer than half of Americans actually have private life insurance coverage not from an employer, according to the insurance research and consulting firm LIMRA.
About 70 percent of consumers blame living expenses for keeping them from purchasing any or more life insurance coverage, LIMRA says. But that’s a problematic way of thinking, says Steven Weisbart, senior vice president and chief economist for the trade group Insurance Information Institute.
“You would want to protect (your income) a little better than just hoping nothing bad happens,” Weisbart says.
Some other reasons people dismiss the need for life insurance include “I’m busy now — I’ll get to it later,” “It’s too complicated” and “I don’t know anyone who died at my age,” says Glenn Daily, a fee-only insurance adviser in New York City.
People find it difficult to think about their own mortality, says Jack Dolan, a spokesman for the American Council of Life Insurers, a trade group.
“When you’re in your 30s, you think you’re invincible,” he says. “People don’t think that (death) can happen to them.”
But, as we all are aware, life is uncertain and we don’t know when we’ll pass away. This underscores the need for breadwinners in their 30s with a family to carry life insurance, he adds. “It helps manage life’s risks.”
Not as expensive as you think
Dolan says life insurance is part of the foundation of financial security, along with a bank account and rainy-day fund.
“(Life insurance) is something that any responsible individual should consider in order to protect their loved ones,” Dolan says.
People tend to overestimate the cost of life insurance coverage. According to data from LIMRA, consumers believe life insurance costs nearly three times its actual price tag.
“Most of them probably have never actually priced it,” Weisbart says.
For the 30-somethings who say there isn’t room in the family budget for life insurance, Dolan has a question for you: “How can you not afford it?”
“How will your family afford things if they don’t have the financial resources that they need?” he asks.
Less than $50 a month
If you’re a 30-something parent and are wondering which type of life insurance policy would be best for your family, consider..
Health-insurance rates in Washington’s individual market would increase an average of 22 percent next year based on filings under review by state officials — sparking a new round of partisan finger-pointing.
The increases are almost twice the 13.5 percent increase insurers proposed this past year for 2017. Consumer options also would decrease next year for the 300,000 Washingtonians who buy their health coverage in the marketplace for individuals.
This year 13 insurers offered 154 plans in Washington’s individual market and nine companies sold plans inside the state exchange created under the Affordable Care Act (ACA), also known as Obamacare.
Next year 11 insurers would offer 71 plans with just seven companies selling inside the exchange. No insurers plan to offer individual market coverage in rural Klickitat County, although that may change.