How Much Life Insurance Do I Actually Need?

Author
Dennis Li, Co-founder
Published
9/10/2020

Published on Wallet Squirrel

COVID-19 and Life Insurance

Author
Dennis Li, Co-founder
Published
9/5/2020

COVID-19 has drastically changed our day to day living habits and routines: travel plans canceled, kids are home-schooled and adults are having beers in front of the computer’s camera…

As if that weren’t enough, it’s also making many families pause and rethink about family finance including life insurance.

face mask

According to Life Happens blog’s survey of more than 2,000 adult Americans about how the pandemic changed their financial views and behaviors, more than two-thirds of respondents said that COVID-19 has served as a wake-up call to reevaluate their finances, and the top topics that come up are:

  • Wills and inheritance (33%)
  • Current health issues and concerns (32%)
  • Life insurance coverage (30%)
  • Current financial status (29%)
  • Emergency savings (27%)
  • Future emergency plans (26%)
  • Politics (25%)

We see that life insurance have won the bronze metal which doesn’t come as a surprise. COVID-19 directly threatens everyone’s health, made many of us seriously consider our mortality for the first time, reinforced by the fact that no one—not even the young and healthy—are guaranteed a long life. For most of us, passing unexpected often leaves the loved ones left behind on shaky financial ground.

That’s where life insurance can make a real impact. It ensures your family getting through the difficult time, financially and emotionally, maintains their standard of living when your earnings are no longer in the picture.

How much life insurance do we need?

When it comes to life insurance purchase option, the answer is often highly personalized and depends on personal circumstances, financial situations, other existing life insurance policies and your risk appetite. To add salt to injury, life insurance products are complicated and opaque to say the least. They range from plain vanilla Term Life Policies to highly sophisticated Index Universal Life policies and anywhere in between, which will certainly make your head spin.

Before COVID-19, most people rely on consultation service with life insurance agents to make purchase decisions. Now, as more and more life insurance policies are sold directly online, there seems to be a void on this service and people start guesstimating, using simple rule of thumbs…

Unlike Auto policies, once you purchase a life policy, though some do allow you to surrender within a specific period of time without charges, most policies are bought and “locked in a drawer” for decades. People will only out find out if the policies are right or not when it is all too late…

Though having any insurance is no doubt better than not having it for most people, with the technological capabilities we have, we can certainly do better.

So here is where Reeske can help you. Reeske uses advance algorithm to calculate risk scores to help you fully understand your risk coverage, and subsequently provide a personalized life insurance proposal to help with your decision-making process. Reeske do not make decision for you, but equips you with the tool needed to make the right decision. Our goal is to make sure you buy the RIGHT kind of the policies with the RIGHT amount of coverage, in the fastest, most transparent and impartial way.

Taking the first step is never easy. But the peace of mind you’ll get knowing that your loved ones are protected makes them completely worth it, especially in a difficult time like this.

Share