According to the 2023 Insurance Barometer Study, more than 100 million uninsured and underinsured Americans say they could use more life insurance coverage. Research has shown that three out of ten American households put their financial future at risk every day because they don’t have the life insurance they need. This is understandable, as life can get extremely busy. Not only that, but with so many financial obligations already on the table, it can be hard to find the funds also to have appropriate life insurance coverage.
We go about our day and tell ourselves that we’ll get coverage one day. For many Americans, that day never comes, and their families find themselves in worse financial straits than they already were because of a lack of life insurance. So, this post is just another one to remind you of the importance of life insurance and what you should do during Life Insurance Awareness Month.
Why Is Life Insurance Important?
You may not think it wise to have a life insurance policy on yourself – because you won’t be around to use it when you die. Life insurance is not for the one who dies. It’s for the ones who live. The death benefit from a life insurance policy supports the loved ones you leave behind. A life insurance policy can:
- Cover outstanding bills
- Cover the cost of your funeral so your family won’t have to
- Replace your income so your family can continue in the lifestyle they are used to
- Fund a child’s education
Depending on the type of life insurance policy you get, life insurance could even have living benefits. That means it could provide you with funds while you’re living to buy a home, cover emergency expenses, or supplement your income.
In addition, appropriate life insurance coverage provides a feeling of security. Nearly seven out of ten people who own life insurance say they feel financially secure compared to those who don’t have insurance.
What To Do During Life Insurance Awareness Month
This month is a great time for everyone to evaluate their need for life insurance. If you do have life insurance, it’s a great time to evaluate your coverage. If it’s been a while since you started your policy, evaluate your life changes.
- Have you gotten married or divorced?
- Has your family grown?
- Do you now have kids, or is one on the way?
- Has your beneficiary died?
Whether you have life insurance or not, here are questions you should always be asking yourself:
- Would my family be able to pay out-of-pocket expenses for my funeral immediately, or would they need to take out a loan or start a GoFundMe page?
- Would my family be able to continue to pay the mortgage or rent after I’m gone?
- Would my family be able to maintain their current lifestyle? Would they have to move or find another place to live?
- Would my family be able to pay their debts?
- Would my family be able to save for their future?
Your answers to these questions will help you to know if you’re underinsured and need to revisit your insurance policy or if you need to start an insurance policy.
What You Should Know About Life Insurance
People have misconceptions about life insurance. Here are a few things you should know to avoid the misinformation.
1. Life insurance may not be as costly as you think.
Never assume you can’t afford something. The best way to know if you can afford life insurance is to have a conversation with a licensed insurance agent. There are different types of life insurance options. It is their responsibility to help you find the one that’s best for you.
2. You can purchase life insurance at any time.
Although September is Life Insurance Awareness Month, you can get covered at any time. The best time to buy a life insurance policy is always going to be ‘now.’
3. You’re never too young to purchase life insurance.
Many younger people believe they don’t need to think about life insurance until they’re older. But the thoughtful questions above apply to anyone who’s old enough to work. Younger children are normally covered by their parents. It’s never good to think of a child dying before their parents, but it happens, and parents need to be prepared.
The truth is that the younger you are, the less the insurance policy will cost. Insurance premiums become more expensive with age. So, if you wait until you’re older, you may not be able to afford it.
The Bottom Line
September is a great time to re-evaluate your life insurance needs, as life changes quickly. Do an annual check to ensure your insurance coverage is still appropriate for your family. If you currently don’t have coverage, it’s time to have a conversation with a licensed agent. Life Insurance Awareness Month comes around once a year, but the need for financial security never stops.
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