Life insurance and why to consider it

Life insurance and why to consider it

(WWBT) - Although 70 percent of Americans consider life insurance a necessity, 41 percent don't have it.

That's according to industry groups Life Happens and LIMRA.

The main reason to have live insurance is to cover the cost of burial and other financial expenses.

The typical funeral costs between $7,000 and $10,000. Cremation is cheaper, but it can still run as much as $4,000.

Life insurance also helps surviving family members pay off remaining mortgage expenses and supplement retirement income or college expenses.

Generally, life insurance is thought of during major life events like marriage or having children. But simply being young and healthy is a reason to consider it as well.

Financial planner Thomas Block had his own health scare last year, and knows all to well how important that safety net can be.

"I'm 38 years old, I have my 4-year-old and my 2-year-old, so of course I want to be around for them for a long period of time," Block said. "But I did have a health scare last summer where I was diagnosed with bladder cancer. I caught it early, but being in the business, I understand how that affect someone's insurability."

The two main types of life insurance are term and permanent. Term insurance is "rented" for a set number of years while permanent insurance lets you own your insurance, but it more expensive.

As always, it's good to talk to a certified financial planner or tax advisor of your choosing about your own situation to figure out what best fits your needs.

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