4 Costs of Skipping Out Life Insurance

​Everyone needs life insurance, especially if you are married or if you have kids. However, because the cost of coverage could be very high, many people choose to go without life insurance. Nonetheless, the reality is that the premiums may not cost must if you are still young and in good health. On the other hand, if you do not have life insurance, you will have to encounter more difficulties.

Short-Term Impact
Life insurance is supposed to be your financial safety net, especially if it carries with it benefits for the policy holder's death or medical expenses while he is alive. One immediate issue would be funeral and burial costs. While an average funeral can cost thousands of dollars, a life insurance policy can help ease the financial burden by covering the expenses involved. In addition, life insurance can serve as a buffer against medical costs, mortgage payments, car loan, and things that your loved ones will continue to pay after your death. Thus, without life insurance, your family will be compelled either to dig into savings or to work hard for their own expenses.

Long-Term Cost
If you forego with life insurance simply because you think it will break your budget, then it can impact your loved one's financial outlook in the long run. For example, in case you leave behind an unpaid mortgage for them to continue paying, then life insurance could have relieved them of the burden. The maintenance costs of things, as well as other unpaid loans, could reach more than $250,000 in many cases. Your dependents won't be able to survive with such a big burden especially if your children are still young.

Impact on Children’s Education 
The long-term burden for not having life insurance will certainly affect your peace of mind if the time comes that you will have to spend a lot on your kids' education, especially if it is time for them to go to college. In fact, it is predicted that by 2032, average tuition fees for four-year courses would cost around $40,000 a year for public or state colleges while $90,000 for private ones. If you did not prepare for this, your children would have to deal with a lot of student loan debt.

Retirement Regrets
Also, without life insurance, your retirement years would have to be difficult as it should only depend on Social Security. The monthly payout is just around $1,200 on average. You will have to make your lifestyle suit this amount if you have not obtained any life insurance earlier.

Some Final Words
When choosing your policy, consider the amount of coverage you need and look into how you can use the money. Higher premiums are suitable for those who want to build wealth through the years. However, if you want to have money just for the basics, you should talk things out with your agent. After all, it still always depends on the cost of premiums that you can continuously afford to pay. 

At Rick Case Insurance Agency, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (405) 722-5556 or Click Here to request a free quote.