6 Consequences of Living Without Life Insurance

Dec 07, 2016

Due to widespread misconceptions and a lack of general consumer understanding about life insurance products, millions of Americans who should have life insurance are living without it. To better understand the importance of having life insurance and the protection it provides, look at six consequences facing people who are not insured.

 1. Susceptibility to Debt Traps

Many consumers living with debt don’t want to spend money on products like life insurance until they’ve paid down their debt. While understandable, the logic behind this is flawed. Without life insurance, you could face a financial calamity that greatly expands your existing debt burden. If you have outstanding debts, including student loans, at the time of your death but no life insurance, your family may be held liable to pay off those debts.


2. Risk of Financial Disaster

Living without life insurance, you’re almost always closer to the brink of financial ruin that someone with life insurance coverage. A medical emergency for which life insurance benefits could be pulled to help cover could spiral you into debt. Should you die an untimely death, your dependents will find themselves living in financial crisis.


3. Safety Net Not True Safety Net

A savings account intended specifically for emergencies or unexpected expenditures is hardly a safety net if you don’t have life insurance. If you develop a terminal illness or die unexpectedly, your safety net will likely be drained fast. You or your family is likely to take on debt as well.


4. Children’s Education and Finances

One extension of the aforementioned concern is the financial security of child dependents. If you die prematurely and without life insurance coverage, who will care for your children’s basic needs as they grow and help finance their education? If you have children, life insurance should be a top financial priority.


5. Retirement Planning Concerns

How does the prospect of depending on others for your financial well-being in retirement sound to you? If it’s unappealing, make life insurance protection a part of your retirement plan. Carefully plan for your retirement, ensuring it includes substantial life insurance coverage. If a dependent partner outlives you, the death benefit from your life insurance policy can make the difference between financial freedom and financial anxiety.


6. Tax Benefits

Buying a life insurance policy entitles you to income tax benefits. Most income obtained as a result of a life insurance death benefit does not have to be reported, making it tax-free income.


Do you have a better handle on how risky it is to live without life insurance? If you have questions about life insurance coverage or are looking for a policy that’s well-suited to your life’s circumstances, work with a Brokers Alliance approved life insurance provider to secure coverage that can spare you and your loved ones from financial ruin. Call (800) 290-7226 to learn more about the tools, products, and resources brokers have access to when working with us.

Category: Life Insurance

Category List

Tag List

Required Minimum Distribution (1)
Annuity Concepts (12)
Interest Rates (1)
MYGA (10)
estate planning (2)
PPC (2)
Life Insurance Broker (15)
Breast Cancer Research (1)
2019 (1)
Best Rates (1)
Long-Term Care Awareness Month (1)
Financial (4)
industry trends (1)
Charity (2)
sales presentations (2)
Webinar (1)
Baby Boomers (1)
Waste Management Open (1)
Looking Forward, Giving Back (1)
Charitable Giving (3)
resources (1)
Retirement Investment (3)
DOL (2)
Additional Earning (1)
Generation Y (1)
Life Insurance (90)
Retirement ACE (1)
Tips (4)
Investments (2)
Sales Concepts (13)
Market Exposure (1)
Indexed Annuity (3)
life happens (1)
gul (2)
Retirement (12)
tools (2)
Financial Planning (20)
Product Updates (1)
Millennials (6)
CSO (1)
selling (1)
Life Insurance Update Show (9)
Social Optimization (3)
Video On-Demand (2)
Deferred Fixed Annuities (1)
illness (1)
Financial Legacy (6)
Brand Values (1)
FIA (1)
Roth (1)
term (5)
Variable Annuities (1)
injury (1)
Media (2)
Health Care (2)
Fixed Annuities (9)
review (2)
Sales (24)
business (1)
Fixed Indexed Annuities (2)
Breast Cancer Awareness Month (5)
end of year (1)
case studies (3)
IUL (13)
Immediate Fixed Annuities (1)
Pitch (1)
PIA (2)
Compliance (1)
Marketing (12)
Social Media (8)
rates (1)
Premium Finance (5)
training (4)
Brokers Alliance (8)
Life Insurance Awareness Month (6)
Life Insurance Check Up (6)
Life Quotes (4)
non-med (2)
Protection (1)
private pension funding (1)
Life Insurance Evaluation (8)
Long Term Care (4)
underwriting (1)
Alternatives (5)
hiring (6)
networking (1)
Benefits (1)
Quoting Tools (1)
Advice (1)
Brokers Alliance Open (1)
funeral (1)
Income (1)
PBR (1)
Asset-Based LTC (1)
Legacy (1)
Prospecting (4)
Brokers (2)
savings (1)
Income Planning Academy (1)
life 101 (2)
presentations (2)
Index Universal Life (1)
Retirement Planning (24)
IRA (1)
life insurance awareness (1)
Leaderboard (1)
Clients (2)
Gender Gap (1)
Tax Benefits (2)
leads (6)
Life Insurance Brokers (6)
premium deposit account (1)
life insurance quotes (1)
earning opportunities (1)
sales kit (1)
permanent life insurance (4)
Hybrid Products (1)
march madness (1)
Gift (1)
Annuity Update Show (11)
advanced markets (1)
products (5)
Production (1)
Training Event (1)
business solutions (4)
Facebook (2)
Universal Life Insurance (2)
Annuity (1)
Annuities (32)
Insurance (21)
Healthy Living (1)
Mobile App (1)
living benefits (7)
Retirement Strategy (4)
key person (1)
quoting (1)
buy sell agreement (1)
Death Benefit (2)
Beneficiary (1)
Legacy Planning (1)
Life Insurance Trends (21)
business owners (4)
E-App (1)
final expense (1)
term life (8)
consumer marketing (6)
RMD (1)
trends (1)
Content Building (2)
advanced planning (2)
Cash Value (1)
business planning (6)
Donation (1)
Star Wars (1)
social security (1)
Alternative Investments (2)
Executive Bonus Arrangement (1)

Tag Cloud

DonationtrendsproductsFinancialBrokers AllianceLife Insurance Evaluationlife happensContent Buildingbusiness planningtrainingTraining EventRetirement StrategyTax BenefitsRetirement ACEcase studiesfuneralRetirementprivate pension fundingPPCIndex Universal Lifelife insurance awarenessAnnuitiesBeneficiaryAnnuity ConceptsDeferred Fixed AnnuitiesLegacy PlanningLegacygulratesAnnuity Update ShowtoolsProductionInvestmentsLeaderboardRetirement Planning2019leadsCharitable GivingFixed Indexed AnnuitiesLife Insurance BrokersMobile AppComplianceIncome Planning AcademyMYGAresourcesLooking Forward, Giving BackWaste Management OpenAsset-Based LTCDeath BenefitLong Term CareSalesbusiness ownersbuy sell agreementbusinesssellingCharityliving benefitssales presentationsLife Insurance BrokerMediaSocial Optimizationindustry trendsBrokersillnessbusiness solutionsLong-Term Care Awareness MonthLife Insurance Check Uplife insurance quoteskey personE-AppFIARothpresentationsProduct UpdatesBaby BoomersHealth CaresavingsBreast Cancer Awareness MonthProtectionInsurancenon-medUniversal Life InsuranceImmediate Fixed AnnuitiesMarketingGeneration YDOLsocial securityCSOestate planningreviewFixed AnnuitiesHealthy Livingearning opportunitiesQuoting ToolsRetirement Investmentadvanced marketsPremium Financemarch madnessadvanced planningLife InsuranceClientsSocial MediaLife QuotesStar WarsIndexed Annuityend of yearhiringinjuryPitchnetworkingInterest RatesPIAPBRVideo On-DemandLife Insurance Awareness MonthGiftRMDtermFinancial Planningfinal expenselife 101AnnuityTipsFacebookMarket ExposureBreast Cancer ResearchRequired Minimum DistributionProspectingBenefitsAlternative InvestmentsBrokers Alliance OpenquotingBrand Valuespremium deposit accountAdditional EarningExecutive Bonus ArrangementIncomeAlternativesterm lifeFinancial LegacyMillennialsIULpermanent life insuranceLife Insurance Update ShowAdviceCash ValueHybrid ProductsGender Gapsales kitSales ConceptsVariable AnnuitiesLife Insurance Trendsconsumer marketingunderwritingIRAWebinarBest Rates