top of page
Writer's pictureSKA

Does Everybody Need Life Insurance?

Updated: Sep 3, 2023

In this blog, we argue the reason for everyone owning Life Insurance. Whether a college student or a billionaire, life insurance has a place in everybody’s portfolio.


According to the Insurance Information Institute, over 106 million American adults do not have any life insurance, whether personal or through their workplace. Is that because these 106 million Americans do not need it? No. In fact, we’d like to make the case that everybody needs life insurance. However, some people need life insurance more than others.


A lot of Americans who are single and have a low net worth tend to not have life insurance. In our eyes, this is a big issue. If these individuals pass away, there is no money available to pay for their funeral costs, hospital bills, etc. The solution that we see all too often is that families and friends set up GoFundMe fundraisers to pay for these costs. And although a GoFundMe is a great tool that has helped thousands of people, the money raised may not be enough and could be a strain on an individual’s friends and family.


Well, what’s the alternative?


Life insurance for these single, low net worth individuals can be extremely affordable. For example, a healthy female age 20 can get a 10 year $100,000 term policy for only $7 a month. Almost everyone can afford that.


Even so, an indexed universal life policy for the same healthy female starting at $100,000 of coverage is as low as $51 a month. With a modest 5.00% annual growth, which it is likely to outperform by some margin, the policy will last her for the rest of her life and will have accumulated to over $543,000 by age 100.


Other profiles include anybody with a mortgage who should, in our opinion, have more than enough life insurance to cover the outstanding loan. Spouses or couples with children should not only have life insurance on the breadwinner, but on the other partner as well. The supplement income of the non-breadwinner, as well as the caretaking needed for the children needs to be supplemented to not cause financial hardship on the family. Life insurance can help solve these problems.


Every life has value. Therefore, every death is going to result in a loss of value. Although life insurance is not going to replace the loss of a loved one, it is going to ensure that the people left behind are taken care of.

We challenge you to think of a person or situation that is not in need of life insurance!


Contact us today to discuss your life insurance needs!


(559) 322-2230




Recent Posts

See All

Comments


Commenting has been turned off.
bottom of page