September is Life Insurance Awareness Month, which is a month-long public awareness campaign sponsored by the nonprofit organization Life Happens and LIMRA.
If the income you earn would cease due to death, could your family continue to fulfill their financial obligations, such as paying the rent or mortgage, paying bills, daily living expenses, or even sending a child to college? While the planning discussion surrounding death is often difficult, it is necessary to ensure that you have the appropriate 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, lump-sum death benefit to your family if you die early or unexpectedly, which can be utilized to replace lost income and fund other needs.
According to a recent study,1 while life insurance ownership increased from 50% to 52% over the past year, there is still a large life insurance gap among consumers. Also, 30% of non-policyowners indicated they needed to purchase life insurance. This survey suggests that a large percentage of the population is not getting the insurance needed.
Everyone’s situation is different, and amount and type of coverage needed can vary. The first step to analyzing your current life insurance needs is to review your existing life insurance policies with your financial advisor and discuss your current financial situation. Your advisor can then discuss if your current insurance fits your needs or if a different type and/or amount of insurance could be an option.
1 2023 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 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.