Life Insurance Awareness Month: The More You Know

Assess Life Insurance Needs 

September is Life Insurance Awareness Month, a reminder to pause and ask: If something happened to me tomorrow, would my family be financially secure?

If your family relies on your income, it's critical to consider having enough life insurance to provide for them after you pass away. But too often, life insurance is an overlooked aspect of personal finances.

Many families are not as prepared as they think and rely on policies provided through their workplace. While employer benefits are a great start, LIMRA found the median workplace coverage is just $20,000, or in other cases, about one year’s salary. That’s helpful, but for most households, it would be used up quickly. In fact, nearly half of families relying only on workplace life insurance say they’d face financial difficulty within six months if the primary wage earner passed away.

So why do so many people put off getting the coverage they need? One reason is cost misconceptions. Studies show that three out of four Americans overestimate how much a policy would cost, with younger adults sometimes guessing it’s 10 to 12 times higher than it really is. In reality, term life insurance can often cost less than your monthly streaming subscription or daily coffee run.

Another reason is simply not knowing where to start. LIMRA’s research shows that 90% of people feel they need to better understand life insurance before purchasing it, but most never take the step to learn. Interestingly, when someone does sit down with a financial professional, 86% go on to buy coveragebecause they finally have clarity and confidence.

The attached resource provides good information from the Life Insurance Marketing and Research Association (LIMRA).

Life insurance doesn’t need to be overwhelming, and it certainly doesn’t need to be unaffordable. This month is the perfect time to revisit your coverage needs, understand your options, and make sure your family’s financial future is secure.

If you’re unsure whether your current coverage is enough or if you’d simply like to know what options are available, let’s have that conversation. A little plan today can make a world of difference for your loved ones tomorrow. At the very least, you can understand the benefits and costs involved in protecting those you love.