As the economy continues to improve and Americans pay closer attention to savings and retirement plans, it’s becoming increasingly important to put life insurance into the mix as well. In a 2012 survey by InsuranceQuotes.com, it was found that almost 4 in 10 Americans do not have life insurance — for those who have life insurance, 1 in 3 don’t fully understand the policy terms. That needs to change.
For the young and single who are unlikely to be making much money in the first place, life insurance is probably unnecessary. However, if someone else is dependent on your income — children, a spouse — it becomes increasingly critical to make sure that there’s a safety net in the event of one’s death, especially given the volatile nature of today’s economy.
One of the more common forms of life insurance is a “term” life insurance policy. Term life insurance guarantees benefits with a regular premium if you are to die within a “term” set by you and the insurer.