September is Life Insurance Awareness Month

September is Life Insurance Awareness Month (sponsored by LIMRA, ie: Life Insurance Marketing and Research Association) and you’re forgiven if it hasn’t exactly filled you with excitement. After all, who wants to celebrate the eventuality of their own demise? Most of us would rather celebrate a birthday, a raise or even a trip to the dentist, for that matter. Life insurance is one of those things that we’d prefer not to give too much attention to. We figure if we’ve already taken out a policy, then it’s ok to put it on the shelf and forget about it. If we haven’t taken out a policy yet, we’ll eventually get to it; just not right now. 

Regardless of how you or I might feel about life insurance, there’s a reason it’s been given its own month for awareness. Recent LIMRA research shows that 42% of households would face financial hardship within six months should a wage earner die unexpectedly; 25% would suffer financially within a month (limra.com). 

Further, per LIMRA, at least 102 million Americans live with a life insurance gap; that is, they don’t have enough protection (or none at all) to protect their loved ones with financial support, should they die. This should be alarming, since most of us place the welfare of our families above our own. Knowing that, should we die unexpectedly (be it a traffic accident, heart attack, stroke or terminal illness), it’s of paramount importance to know that our loved ones can take the time to grieve without worrying about how to pay the mortgage and other bills, along with funeral expenses.  Additionally, there are the future “promises” we’ve made to our families that need to be protected as well, such as college educations, long term care and making sure there’s enough in savings for a satisfying retirement. A diligent review of current debts and lifestyle should be done on an annual basis to ensure there isn’t an “insurance gap”, not only in the immediate, but in the future as well should an unexpected death occur.

But as the saying goes, it doesn’t end there. Making sure the debts are paid and the family lifestyle remains in place aren’t the only reasons for responsible life insurance coverage. An unexpected death can also have a damaging effect beyond our immediate families. If we own a business (as a sole proprietorship, a partnership or even part of a corporate ownership group), an unexpected death can impact the leadership of the company, the employees and also the customer base. Leadership roles are comprised of unique traits and talents, and their loss will leave a void in the company, which may not be easily replaced. This loss is clearly most noticeable in sole proprietorships and partnerships. Further, employees and customers need to know that if there’s an unexpected death, jobs will remain intact and orders will be filled, respectively. By insuring these “key persons”, the future of the company stands a much better chance of continuation. As difficult as it may be, it would be considerably more challenging without this type of insurance. 

Finally, there’s long term care. Per Morningstar.com, approximately half of us will need some form of LTC at some point in the future, be it at home or in a formal setting. Add to that the cost of care, which is ever rising as the Baby Boomer generation continues to add to the retirement ranks. By utilizing a LTC policy (or a life policy/annuity with long term care benefits built-in), decisions that will need to be made will be squarely in the hands of the policy owner and his or her family, as opposed to the state in which Medicaid is administered. 

Thank you for reading and being interested in Life Insurance Awareness month. I applaud LIMRA for bringing attention to it. All of the topics I’ve outlined in this post have been covered in previous posts I’ve written. You can access them here. It’s key to remember that life insurance isn’t only about you, it’s about those whom you love and care for. 

If you’d like to learn more about any of the types of insurance I’ve covered above, please contact me at d.babecki@db3insuranceservices.com or give me a call at 941-704-3134. As always, thank you for reading and let me know how I can be of service.

The above article reflects the opinions and thoughts of David J. Babecki. The information contained in this material is believed to be reliable, but not guaranteed. It is for informational purposes only and is not a solicitation to buy or sell any products which may be mentioned. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

Please note: all guarantees and/or promises are based on the claims-paying ability of the respective insurance company.