Protect Your Family With Life Insurance
Every year, September is Life Insurance Awareness Month (also known as LIAM). LIAM began in 2004, when the nonprofit organization Life Happens founded this initiative to help educate consumers on the importance of having adequate life insurance coverage.
Maybe you already have life insurance in place to protect your family. You're in the majority, but still, nearly half of Americans do not own life insurance. A study by Life Happens and not-for-profit research trade association, LIMRA, found life insurance ownership was at 57% in 2019.
Life Insurance Awareness Month strives to reduce this ownership gap by bringing attention to the importance of life insurance for safeguarding families and their financial security. According to the 2019 barometer study by Life Happens and LIMRA:
- 66% of people recognize a need for life insurance yet many do not have adequate coverage.
- Over 50% of Americans overestimate the cost of a term life insurance policy by 3 times or more than its actual cost.
- 40% of American families without life insurance would experience significant financial issues if the primary wage earner passed on.
There's still a disconnect between how people feel about life insurance and actual life insurance coverage. Life Insurance Awareness Month aims to bridge this knowledge gap through its annual industry-wide campaign to ultimately provide consumers with educational resources so families can feel secure no matter what happens in life.
Common Life Insurance Misconceptions
One of the functions of Life Insurance Awareness Month is to dispel myths about life insurance. There are misunderstandings about life insurance due to a lack of information and misinformation. Let's dispel some common life insurance misconceptions.
1. Life Insurance Is Expensive
Despite the misconception that a life insurance policy is costly, in reality, life insurance costs around $13 to $20 per month for term life insurance coverage. That's far cheaper than a daily cup of coffee from your favorite barista.
Life insurance costs can also go down depending on age and health. People may be surprised to find out the costs when they talk to a life insurance professional.
2. I Don't Need Life Insurance
People who are healthy, have no family history of medical illness, and use safety precautions in their daily life — like wearing a seat belt while driving — may think there's no need for life insurance.
Unfortunately, accidents do happen. On the road, at work, at home, while traveling — nothing in life is ever completely within our control. If you have loved ones who rely on you, or you plan on having kids in the future, you can get life insurance now at a lower rate than if you wait. Plus, you'll get peace of mind that protection is in place to help your loved ones.
Singles who have no dependents may also question the value of life insurance. Life insurance can cover the costs of personal debts, funeral, and medical bills. Singles with life insurance ensure that their family members don't have to pay the unpaid expenses that are left behind.
3. The Life Insurance I Get Through Work Is Enough
Those who have a life insurance policy through work may think it's enough to keep them covered. Any life insurance policy is a great start, but there are some major reasons to consider a policy outside of a work. These reasons include:
- You may leave that job. If you lose or quit your job, the life insurance coverage may also disappear. You then will have to apply for a new policy, which could be more expensive or be more complicated because of your age or current health state.
- Your coverage may be lacking. Your work life insurance policy may not provide the financial coverage you need for your children, partner, and bills you have to pay.
- You may be overpaying. In some cases, you could get a less expensive life insurance plan outside of your work life insurance plan, that also provides better coverage. It's worth looking into individual plans to see your pricing options.
Never assume an employer life insurance plan is enough. Explore your life insurance coverage options so you get the best deal and coverage for your family.
Spread the Word About Life Insurance to Your Loved Ones
Life insurance is a valuable safety net for most people to have. Whether you're single, married, with children or without, life insurance protects your loved ones when you pass on.
Share this article with a loved one who might need life insurance coverage or better life insurance coverage than they currently have. If you are interested in life insurance coverage for your family, contact Corebridge Direct.
