Purchasing life insurance may not be the most enticing financial move, but it sure can be rewarding. Not for you though, and that’s the point.
Insurance agents from Gracey-Backer, Inc. describe life insurance policies as simply the most long-term financial decision a person can make. Of course, the entire agreement revolves around a person not living to see their investment pay off, and this precise reason is why fewer and fewer individuals are purchasing life insurance, even when they could and they should.
According to life insurance research group LIMRA’s 2015 study, not even a fifth of Gen X and Y consumers plan on purchasing life insurance, forgoing an opportunity to assist in, if not outright secure, the financial future of their heirs. “The study clearly shows that people recognize the value of life insurance and the risks they face being underinsured,” said Todd A. Silverhart, Ph.D., corporate vice president, LIMRA Insurance Research. “Yet other financial priorities and confusion on what they need lead many consumers to postpone buying life insurance.”
Silverhart adds that unwillingness or incapability are not necessarily the reason for such a low number of new life insurance policies. He cites a separate LIMRA study that identified 19 million consumers who simply found the buying process too complicated to pursue. Silverhart stresses the need for improved, authentic communication between consumers and their insurance agents to resolve the policies “in limbo”.
It may be difficult for younger people to envision the benefits of a life insurance policy, but even if their premium payment would not yield anything during their lifetime, this does not diminish the value every policy holds, especially when it comes to estate planning or simply providing financial support to your family after you have passed.
To be fair, purchasing life insurance should never be a top priority to a person still struggling to provide for their present self. But, for everyone else, planning a future not only for yourself but also for your descendant is a noble opportunity that no capable person must miss.