Life Insurance Awareness Month: Securing Your Future, Protecting Your Loved Ones
If you weren’t here tomorrow, would the financial promises you’ve made to your loved ones be kept? It’s a tough question, but one that lies at the heart of financial planning and peace of mind. September is Life Insurance Awareness Month, a nationwide initiative dedicated to helping people have this vital conversation. It’s the perfect time to move past the myths and see life insurance for what it truly is: a foundational tool for securing the future of everyone who depends on you.
What is Life Insurance Really Protecting?
Too often, life insurance is viewed through a very narrow lens. But its impact extends far beyond covering final expenses. It’s a safety net that protects the life you’ve built and the future you envision.
For families, it’s about stability in a time of crisis. It’s the peace of mind that comes from knowing the mortgage will be paid, daily living expenses will be covered, and long-term goals like a college education are still within reach. It ensures that a personal tragedy doesn’t also become a financial catastrophe.
For small business owners, the stakes are just as high. Life insurance can be the key to business continuity. It can fund a buy-sell agreement, allowing a smooth transition of ownership if a partner passes away. It can also be structured as “key person” insurance, providing the business with the capital needed to survive the loss of an essential employee and recruit a replacement without jeopardizing operations. It protects your business, your employees, and your legacy.
Debunking the Most Common Myths
Let’s be honest—many of us put off buying life insurance because of a few persistent myths. Let’s clear them up.
- Myth 1: “It’s too expensive.” This is the most common misconception. A 2023 study by industry groups LIMRA and Life Happens found that more than half of Americans overestimate the cost of term life insurance by three times or more. For example, a healthy 35-year-old can often secure a 20-year, $250,000 term life policy for around $25-$35 per month—less than a weekly trip to the coffee shop.
- Myth 2: “I’m young and healthy, I don’t need it yet.” This is actually the best time to get it. Your age and health are the primary factors in determining your premium. By locking in a rate when you’re young and healthy, you secure the most affordable coverage for decades to come. Waiting not only increases the cost but also runs the risk of a future health issue making coverage more expensive or even unattainable.
- Myth 3: “I have it through work.” While group life insurance is a great benefit, it’s often not enough. These policies typically offer a benefit of one or two times your annual salary, which may not be sufficient to cover a mortgage and long-term family needs. More importantly, this coverage is rarely portable. If you change jobs, you lose it, potentially leaving you uninsured at a time when you’re older and coverage is more expensive.
- Myth 4: “I am not insurable.” That may not be the case, even if you have been turned down in the past. It is an opportunity to discuss your concerns confidentially with your Broker who can present to an underwriter prior or submit an Informal Inquiry before signing a formal application. There may also be options to obtain minimum face amounts without submission of proof of insurability for final expenses.
Your Next Step is a Simple Conversation
Getting started is easier than you think. It begins with a simple assessment of your needs. Think about your income, your debts, and your long-term family or business goals. From there, you can explore your options. The most common are Term insurance, which provides coverage for a specific period (like renting), and Permanent insurance, which provides lifelong coverage and builds cash value (like owning).
This September, use Life Insurance Awareness Month as the catalyst to protect what matters most. The most valuable gift you can give your family or your business is the certainty that they will be secure, no matter what happens.
A simple conversation can provide clarity and confidence. If you’re ready to review your needs or explore your options, we’re here to help you take that important first step.