Life Insurance Awareness Month:
Everything You Need To Know
Every year in September Life Insurance Awareness Month aims to educate people about the importance of life insurance coverage. As of 2023 the public’s interest in life insurance is at an all time high. In 2023 nearly 40% of consumers said they planned on purchasing life insurance in the next year. This is likely due to the fact that younger Americans are coming out of the COVID-19 pandemic, which for many people was a life altering event. In prior decades most Americans weren’t thinking about life insurance until they were older, but we’re seeing an increasing trend in younger generations expressing interest.
Keep reading to learn the answers to top questions people ask when considering life insurance coverage.
What is life insurance?
Life insurance is a contract between an insurance company and a policyholder where the company promises to pay a sum of money upon the death of the insured person in exchange for a premium that is paid to the insurance company. There are different types of life insurance coverage. Permanent life insurance coverage allows access to the cash portion of the account while the person is still alive while term life insurance coverage does not. Some life insurance policies require a medical exam and some are advertised as no-exam life insurance.
When is the right time to get coverage?
Whether you’re older or younger, anytime is a good time to obtain a life insurance policy but the right time to obtain a policy is now. Like other types of insurance, life insurance coverage requires planning. Once you need coverage it’s too late. For that reason, it’s better to be proactive and have coverage long before you need it.
Is life insurance expensive?
Life insurance isn’t as costly as one might think. A LIMRA study estimates that roughly 50% of young Americans overestimate the cost of a life insurance policy. It’s a common misconception among younger generations that they don’t need life insurance until they get older, however, life insurance policies are oftentimes much less expensive when you’re younger. This is especially true for policies that use medical exams to determine pricing. Healthier people often receive less expensive quotes for these plans. Buying a life insurance policy at a younger age can protect someone’s financial future and the financial security of those who depend on that person’s income.
How much should my life insurance policy cover?
The first step to answering this question is to calculate your life insurance needs. Life insurance policies have no strings attached. Policies can be used to pay debt, day-to-day expenses, saving for college and much more. Answering a few questions can give someone an idea of the correct amount that a life insurance policy should be insured for.
How much debt do I have?
How much do I have in savings?
Who do I want to protect?
How long would they need financial support?
National Life Insurance Awareness Month comes once a year but the financial security that life insurance coverage provides is long-term. At Trusted Insurance Partners LLC., we can help you answer the important questions and ensure that you’re insured with a life insurance policy that meets your needs. Contact us today to get started with a life insurance quote and begin your journey to long-term financial security.