Life Insurance When You’re in Poverty

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What Is Life Insurance?

Life insurance, according to Policy Genius, is described simply like this:

Life insurance is a tax-free lump sum of money provided to your loved ones in the event of your death, which allows them to continue toward their financial goals.

What Do Life Insurance Agents Do?

According to Policy Genius, a life insurance agent is “A licensed professional who sells insurance policies to consumers on behalf of one or more insurance carriers…If you’re looking to start the process of buying life insurance, an agent can help you understand your options.”

But what if you’re in poverty and your options for almost everything are limited?

How Poverty Impacts Life Insurance

Impoverished people don’t have the luxury of considering life insurance options as deeply as other, more financially stable folks.

The bottom line is, everyone needs life insurance. Those who are in financial hardship should make sure that their family is protected if they pass away.

That’s why good life insurance agents should know how to find the right policies for those in hard times.

Insurance Provides Hope

If a family suddenly faces financial hardship due to loss of a job, a home or a caretaker, insurance provides hope. How?

Well, insurance provides the possibility of:

  • Mortgage help
  • Sending kids to college when they don’t have the funds
  • A safety cushion when loss occurs

The problems Those Without Life Insurance Face

When a head of a family passes away, life insurance is crucial to help their family stay afloat. Lack of life insurance in such circumstances can lead to a snowball effect of worsening consequences:

  • Loss of income
  • Loss of family time due to constant work
  • Loss of transportation
  • Stress, anxiety and depression that builds up over time
  • Loneliness
  • Loss of healthy habits that are too expensive to maintain
  • Difficulty building and maintaining credit

There are cheaper life insurance options available that make great choices for lower-income families. According to reviews.com, these are some of the best life insurance companies with cheap policies:

  • Protective Life
  • Pacific Life
  • Principal Financial
  • New York Life