September is Life Insurance Awareness Month. At this time each year, the insurance industry takes the time to remind Americans how important life insurance can be in the financial protection of their loved ones.
At LGA, we support Life Insurance Awareness Month because it gives people an opportunity to learn more about the importance of getting a policy and how it can help them protect their families.
Life Insurance Awareness Month is led by Life Happens, which brings together many insurance companies and other industry professionals each year to put a spotlight on the importance of life insurance for people across the nation.
Life Happens, is a nonprofit organization whose mission is to provide unbiased information to the public to help them make sound decisions about purchasing life insurance and how to protect their loved ones not only today, but into the future as well.
LGA is proud to partner with Life Happens on a variety of initiatives.
The 2021 life insurance gap
According to the Life Insurance & Market Research Association (LIMRA), up to 40% of American households do not have any kind of life insurance in place. 33% of the people who do have a policy say that the amount is not adequate to protect their family should the policy holder pass away.
With more than 102 million Americans living today with some sort of a life insurance gap, this month is a great time to look at the importance of obtaining a life insurance policy for everyone, regardless of age, occupation or family status.
Let’s explore some common questions people have about life insurance and its purposes.
Who needs life insurance?
Any person who wants to safeguard the financial future of their loved ones or take care of any remaining obligations should they pass away is a great candidate for life insurance.
I’m young with no kids, do I really need life insurance?
Many young people feel that they do not need life insurance, but this is not always the case. If you had a parent or another loved one co-sign a student loan or a car note, you wouldn’t want those debts to be a burden on your survivors if you passed away.
What does life insurance pay for?
The proceeds from life insurance can be used by survivors for any living expenses, including housing, education, funeral costs, retirement funds, estate taxes, and more.
How old do you have to be to get life insurance?
People of all ages can get insured with a life insurance policy, including children and adults.
What kind of life insurance should I buy?
This will depend on your needs, what you can afford and how long you will be needing the coverage. Many -insurance companies offer both term (temporary) policies and permanent (lifelong) plans such as Universal Life.
Read about the different types of life insurance
How much does life insurance cost and can I afford it?
The cost of a policy will be based on the type you buy, your age, health status and the amount of coverage you need. A great majority of people are able to secure a policy that will meet their needs and also be very affordable.
How much life insurance do I need?
This will depend on your life situation both today and in the future. If you are a parent with a young family, you will want to protect them financially should you die for many years to come. If you are single and just want some coverage to take care of debt obligations and final expenses, you might need less.
Will life insurance pay for my funeral?
Yes it can. Life insurance proceeds have been used for many decades to help pay the final expenses of the covered person.
Is life insurance taxable?
Generally speaking, life insurance proceeds are not taxable for the beneficiaries receiving the funds.
How does age affect the cost of life insurance?
The general rule is that the older you are, the more life insurance will cost. It is always better to secure a policy when you are younger, as compared to waiting 5, 10 or more years down the road.
Do I need to be perfectly healthy to buy life insurance?
While health status plays a role in the pricing and underwriting acceptance of life insurance, there are millions of people who have certain health conditions or take medication that have been approved for a policy.
I get life insurance at work, do I need my own policy?
The short answer is, maybe. Life insurance offered through your job is a great benefit, but the amount of coverage available may be inadequate for your needs.
In addition, many job-based life insurance policies end if you leave the company. Having your own policy will give you the peace of mind to know that you have total control over your life insurance protection.
Learn more this September
For decades, LGA has been helping our customers find the right life insurance policy to meet their exact needs. Let us help you learn more this September during Life Insurance Awareness Month.
Give one of our friendly, licensed insurance agents a call at 833-733-0327 or get a free quote online.