Life insurance exists as a means of poverty prevention. It’s effective, but it’s also extremely underutilized.
Poverty is something we tend to think of in its most extreme forms. When we hear the word, we think of hungry children with sad eyes…a homeless man holding a sign quietly on a loud street corner…a tired mother stoically sweeping the dirt floor of her family’s third world home.
For most of us, it seems very far away from where we are. But it really isn’t.
The Reality of Poverty
When last measured by the U.S. Census Bureau, the overall poverty rate was 13.5%, with 10% of adults 65 and older living below the poverty level.
If we don’t change our approach, over HALF of Americans will experience poverty at some point before the age of 75.
Is there anything we can do about this? YES. Absolutely.
First, we can acknowledge that the reach of poverty is not limited to certain people in certain locations or certain situations.
You can be well-educated and poor.
You can be poor while living in the city, or the country, or the suburbs.
You can be poor with a big family, or a small family, or all by yourself.
You can work very hard and still be very poor.
And here’s the thing that really catches us by surprise: you can be poor even if you’ve never been poor before. It can happen very suddenly.
That’s where we can start to make some progress.
Half of families who fall into poverty do so as a result of a sudden decrease in household earnings, often due to death or disability.
Without planning and protection, one tragic incident can tip the scales drastically from financial comfort to extreme poverty.
Government programs can help, but their benefits are limited and support is generally temporary. In 2010, employers spent $1.6 trillion on employee benefit programs, most of which either directly or indirectly protect families from poverty, but it still doesn’t take the place of private life insurance.
An individual private life insurance policy provides not just a quick fix to get your family through the worst part of a bad time, but a sustainable solution to maintaining financial stability and quality of life as well.
What’s Stopping Us?
So why don’t more people, especially those currently enjoying comfortable lives, make life insurance a priority? Many of us simply don’t understand the benefits.
The LIMRA¹ Barometer Study² from 2012 found that:
• 65% of Americans don’t know that life insurance benefits are tax-free
• 76% don’t know that policies are protected if a carrier goes bankrupt
• 82% don’t know that the primary reason insurers collect medical information is to determine premium rates
Then, of course, there’s the awkward truth that buying a life insurance policy is acknowledgement of the fact that you’re going to die. And not only that you’re going to, but that you don’t know when or how. We’re all aware of our mortality, but we understandably don’t relish the idea of signing off on it.
That’s where Final Wishes Covered℠ comes in. We want to start a conversation that isn’t about death, but simply about preparation. About taking the steps now to make sure that your final expenses are covered, and the people you love have what they need later.
We’re here to make a difficult decision a little bit easier. The less time you have to spend shopping for life insurance, the more time you’ll get to spend enjoying the life you’re protecting. Because that’s what this is really all about. Making sure that the beautiful life that you’ve built goes on.
- LIMRA is a worldwide research, learning, and development organization. It provides the latest insight and analysis on retirement, insurance, and distribution and is the trusted source of industry knowledge for over 850 financial services firms.
- The Barometer Study is conducted annually by LIMRA and Life Happens. It is the most comprehensive industry study available and tracks the financial perceptions, attitudes and behaviors of consumers, with an emphasis on life insurance.