By Dan Schulte, Senior Vice President and Manager, Annuities and Insurance
September is Life Insurance Awareness Month, which is a month-long public awareness campaign sponsored by the nonprofit organization Life Happens.
If the income you earn would suddenly stop due to death, could your family continue to meet their financial obligations, such as paying the rent or mortgage, paying bills, daily living expenses, or even sending a child to college? If not, having a life insurance planning discussion with your financial advisor is imperative. While the planning discussion surrounding death is often uncomfortable, it is necessary to ensure you have the proper amount of life insurance for your family to maintain their current and future lifestyle should you die. A life insurance policy provides an income-tax free cash death benefit to your family in case you die early or unexpectedly, which can be used to replace lost income and fund other needs.
According to a recent study* nearly half (47%) of U.S. adults say they would have trouble paying living expenses within six months of their primary wage earner’s death. The study also found that 40% of individuals believe they need more life insurance, representing close to 100 million people.
Your life insurance needs are unique, and throughout your lifespan, those needs can change based on your income earned and family situation. As a result, changes may need to be made to the amount and type of life insurance owned. As a first step in reviewing insurance needs, gather your current life insurance policy statements for an evaluation by your advisor, who can help you take an inventory of your existing coverage and determine if you have a surplus or shortage of coverage by conducting a life insurance needs analysis. This analysis can compare income needs to income sources, and can determine how much additional life insurance is needed to protect any shortfall.
Don’t let your family suffer financially should the unexpected happen. Your financial advisor can review your situation to ensure your family will be protected should your income be halted due to an unforeseen death.
*2025 Insurance Barometer Study by Life Happens and LIMRA
IMPORTANT DISCLOSURES: The information provided is based on internal and external sources that are considered reliable; however, the accuracy of this information is not guaranteed. This piece is intended to provide accurate information regarding the subject matter discussed. It is made available with the understanding that Benjamin F. Edwards & Co. is not engaged in rendering legal, accounting or tax preparation services. Specific questions on taxes or legal matters as they relate to your individual situation should be directed to your tax or legal professional.