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

advanced planning (2)
Health Care (1)
advanced markets (1)
Additional Earning (1)
Protection (1)
Brokers (2)
Clients (2)
Marketing (12)
Indexed Annuity (3)
MYGA (10)
Financial (4)
FIA (1)
Universal Life Insurance (2)
Brokers Alliance (8)
Content Building (2)
Insurance (21)
Looking Forward, Giving Back (1)
review (2)
Life Insurance Update Show (9)
Life Quotes (4)
Waste Management Open (1)
Life Insurance (87)
Sales (23)
resources (1)
Income (1)
Legacy Planning (1)
Baby Boomers (1)
Long-Term Care Awareness Month (1)
Media (2)
end of year (1)
Pitch (1)
Alternatives (6)
business planning (6)
earning opportunities (1)
leads (6)
social security (1)
key person (1)
Best Rates (1)
selling (1)
consumer marketing (6)
injury (1)
term (6)
business owners (4)
Training Event (1)
products (5)
Deferred Fixed Annuities (1)
Healthy Living (1)
Fixed Annuities (9)
Cash Value (1)
Long Term Care (4)
Retirement Planning (24)
Advice (1)
Death Benefit (2)
E-App (1)
case studies (3)
Annuities (31)
Millennials (6)
Social Optimization (3)
RMD (1)
rates (1)
Life Insurance Trends (20)
final expense (1)
Generation Y (1)
2019 (1)
trends (1)
permanent life insurance (4)
Premium Finance (5)
Hybrid Products (1)
Webinar (1)
Breast Cancer Research (1)
Income Planning Academy (1)
Variable Annuities (1)
Roth (1)
industry trends (1)
Brand Values (1)
private pension funding (1)
PIA (2)
underwriting (1)
Life Insurance Evaluation (8)
Legacy (1)
march madness (1)
life happens (1)
sales presentations (1)
buy sell agreement (1)
estate planning (2)
Sales Concepts (13)
Alternative Investments (2)
Retirement (10)
Charity (2)
Annuity Update Show (11)
Financial Planning (20)
Mobile App (1)
Prospecting (4)
Beneficiary (1)
instant decision (1)
Facebook (2)
Gender Gap (1)
business solutions (4)
Donation (1)
Immediate Fixed Annuities (1)
Financial Legacy (6)
Leaderboard (1)
hiring (6)
business (1)
Benefits (1)
Retirement Strategy (4)
Social Media (8)
non-med (3)
Star Wars (1)
Tips (3)
Investments (2)
Annuity Concepts (12)
premium deposit account (1)
Production (1)
term life (8)
Tax Benefits (2)
training (3)
DOL (2)
IUL (12)
living benefits (6)
Market Exposure (1)
Required Minimum Distribution (1)
Charitable Giving (3)
life insurance awareness (1)
illness (1)
IRA (1)
sales kit (1)
Retirement Investment (4)
Life Insurance Check Up (6)
life 101 (2)
Life Insurance Brokers (6)
Interest Rates (1)
Life Insurance Broker (15)
Fixed Indexed Annuities (1)
Breast Cancer Awareness Month (4)
gul (2)
Executive Bonus Arrangement (1)
Quoting Tools (1)
Asset-Based LTC (1)
networking (1)
presentations (2)
Gift (1)
Growth Opportunity (1)
funeral (1)
Video On-Demand (2)
Brokers Alliance Open (1)
PPC (2)
Life Insurance Awareness Month (6)
savings (1)

Tag Cloud

businessMarketingIncomesales kitAnnuity Conceptsbusiness ownersDonationTraining Eventearning opportunitiesSocial OptimizationBrokers AllianceLife QuotesGeneration YAlternativesBreast Cancer Awareness Monthnon-medLong-Term Care Awareness MonthBreast Cancer Research2019underwritingAsset-Based LTCFinancial Planninginjuryadvanced marketsWaste Management OpenIncome Planning AcademyFacebooktrainingInterest RatesLife Insurance BrokersMYGAIndexed AnnuityLife Insurance EvaluationtrendsBrokers Alliance OpenFIALife Insurance Trendsfinal expenseFinancialHybrid ProductsAdviceRetirement InvestmentVariable Annuitiesestate planningIULBeneficiaryratesSocial MediaDeath BenefitGiftFixed Indexed AnnuitiesMediaCharitable GivingStar WarsTax BenefitsClientsend of yearRetirement Strategylife insurance awarenessAnnuitiesFinancial LegacyillnessDOLCharitylife happensbusiness planningProspectingRetirementLeaderboardSalesE-AppfuneralTipsprivate pension fundingBenefitsInvestmentsVideo On-DemandFixed AnnuitiesContent BuildingIRApresentationsQuoting ToolsRetirement PlanningMarket Exposurebusiness solutionspremium deposit accountProtectionRequired Minimum DistributiontermGrowth OpportunityRothPremium FinanceLife Insurance BrokerresourcesMillennialssavingslife 101social securityUniversal Life InsuranceMobile Apppermanent life insuranceproductsImmediate Fixed AnnuitiesBrand ValuesLong Term CarereviewAnnuity Update ShowGender GapgulExecutive Bonus Arrangementkey personmarch madnessliving benefitsLife Insurance Awareness MonthDeferred Fixed AnnuitiesSales ConceptsAlternative InvestmentsleadsPIAinstant decisionsales presentationsLife InsuranceRMDterm lifeAdditional EarningProductionconsumer marketingHealth Carehiringcase studiesbuy sell agreementadvanced planningLegacy Planningindustry trendsnetworkingCash ValueInsuranceLife Insurance Update ShowWebinarLooking Forward, Giving BackHealthy LivingBest RatesPitchLife Insurance Check UpLegacysellingPPCBaby BoomersBrokers


Archive