Special Advertising Feature
The Necessity of Buying Life Insurance Two experts answer questions about purchase options, trends, and expectations
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OVID-19 has driven our need and desire for life insurance. As the pandemic hit, many were faced with the loss of a loved one and the financial strife that can be associated with the death of a loved one. The annual insurance barometer study released in early May of this year tracks the perceptions of and attitudes and behaviors of adult consumers related to financial behaviors with a focus on life insurance. This year’s results yielded some surprises; however, the ownership of life insurance has continued to fall over the last 10 years. Just 54 percent of U.S. adults say they have life insurance, down from an all-time high of 63 percent in 2011. As more and more consumers age into retirement, it’s important to make sure your loved ones have the ability to maintain their current lifestyle, as 42 percent of Americans would face financial hardship within 6 months of losing a loved one. Life insurance agent Kent Pike of Mooresville says he finds people every day that don’t know how affordable life insurance can be. “A lot of people are scared to ask, they think it’s unobtainable and it’s not, life happens unfortunately. I just want to be able to have that discussion with my clients and see if it makes sense for them.” Pike says there are a lot of things to consider when purchasing life insurance and it’s important to sit down and discuss those needs and desires, whether it’s used as an investment vehicle, family protection or to handle your final expenses it should be discussed with a professional that has your interest in mind. -Kent Pike is a licensed Insurance agent with HealthMarkets in Mooresville 26 LimitlessMagOnline.com | June 2021
Why buy life insurance on yourself? Loving and wanting to protect someone is enough reason for you to buy life insurance. Life insurance is an irreplaceable asset for a family to have. It is essentially immediate, tax-free money that someone can use to either save for their future needs or support the family after you are gone. What are my life insurance options? There are many kinds of life insurance policies offered on the market today, the most common forms are term, whole life, and universal life. Term policies are issued for a certain number of years and once the period is up, the policy will terminate. Whole and universal life both offer a form of permanent coverage; some offering a cash value account that can help fund the policy in the future. Final expense or burial policies are also life insurance policies. Most are actually whole life policies designed to only cover the expenses associated with funeral planning. Why buy life insurance on someone else? As someone with insurable interest, you can buy a life insurance policy on someone else. A great example is a grandparent buying their grandchild a life insurance policy. This protects the child’s future insurability and gives them a gift once they become an adult. The child would have the policy for life and no matter their future health, it cannot be taken away. -By Fogle Insurance Group
