It doesn’t matter if you’re single or married, in your twenties or forties, a parent or not, life insurance coverage is important in ways you may not imagine, and it costs less than expected. Experts now emphasize that employer-sponsored coverage is often not enough to meet the needs of most people.
“Living your best life involves risks, but don’t let uncertainty stop you from buying a home, traveling, or starting a business,” says Sean Scaturro, Director of Life and Health Insurance Advice at USAA. “Take the necessary steps to protect your loved ones from the financial burden in case of tragedy.”
Whether to replace your income, pay off debts, fund education, or cover funeral expenses, life insurance provides financial security for loved ones.
Start Young
The 2018 Insurance Barometer Survey, published by Life Happens and LIMRA, indicates that 44% of millennials overestimate the cost of life insurance by five times the actual amount, and 42% believe they wouldn’t qualify. But in reality, premiums are generally lower when you are young, so it’s a smart decision to get some coverage and reassess it as life changes. For many young adults, student loans and housing costs are at the top of the financial priority list. Without life insurance, the responsibility for these debts 
could fall on family members.
Beware of the Gap
Just because you signed up for a life insurance plan through your employer doesn’t mean you are adequately covered. Scaturro cites data from LIMRA showing that American households currently have a $200,000 gap in life insurance needs. “If 60% of people have life insurance and 33% of them only have group insurance, one in five people only has group coverage, which is often not enough,” he says.
Most employer-sponsored coverages offer a fixed death benefit, such as $50,000, or a multiple of your base salary, and many plans are not portable. This means that without a separate individual policy, it can be expensive or too late to obtain coverage if you leave your job.
So, enroll in your employer’s low-cost or free life insurance, but don’t stop there. USAA believes you need enough life insurance to replace five years of your income, in addition to covering all debts. To determine how much coverage you 
need, take advantage of a free online calculator, such as the one provided by USAA at: www.USAA.com/life.
Protect Your Family
Families are especially vulnerable after the death of the primary income provider. In fact, 35% of households would feel the financial impact within a month. That number rises to nearly 50% within six months. How will your spouse pay for extra childcare? Will they be able to keep the house? Will your children’s needs be met?
Experts say it’s important to review your life insurance needs, discuss them with loved ones, consult a financial professional, and take action.
Source: StatePoint