Would your loved ones be able to pay living expenses if you were to pass away? If the answer is "no" or you're unsure, you aren't alone. According to LIMRA and Life Happens' 2016 Insurance Barometer Study, 1 in 3 households would have immediate trouble paying living expenses if the primary wage earner were to die. Even if you aren't the primary wage earner, the absence of your income and support will be felt almost immediately.
Life insurance is a necessity, yet many families still don't have coverage for a variety of reasons. The same study found that 40 percent fail to buy life insurance simply because they don't know how much to buy. For this reason, and several others, Life Happens has designated September as Life Insurance Awareness Month.
Life Insurance Awareness Month 2016 is the 13th anniversary of Life Insurance Awareness Month (LIAM), which is a campaign to increase awareness among consumers and industry leaders about the need for life insurance. Americans as a whole aren't saving as much, and many households have a significant amount of debt. While there is a growing sentiment that there is value in life insurance, not enough people are actually insured. This is clearly illustrated by the results of the latest Insurance Barometer Study.
2016 Insurance Barometer Study
The latest Insurance Barometer Study was completed in January of this year, with results released in April. While 60 percent of the people surveyed indicated that they own life insurance, 19 percent of those only had group life insurance coverage which has been found to be inadequate in most cases.
Sentiment about life insurance is changing, however.
66 percent of consumers, up 11 percent from last year, are willing to recommend life insurance coverage to others. Also, 1 in 3 people without coverage admitted to needing life insurance and 1 in 4 said they wished their partner or spouse had more. Despite low ownership levels, nearly 9 in 10 consumers agree that most people need life insurance. This is important coverage with a long list of benefits.
Importance and Benefits of Life Insurance
There are many different ways that a life insurance policy can benefit your family. While most people would rather avoid discussing or even thinking about the "day that they die," not doing so could be a costly mistake.
While LIMRA's latest study showed that a majority of people purchase life insurance to pay for burial costs, an insurance policy can provide so much more. Life insurance proceeds can keep a family in their home, help to pay off debts, and provide replacement income for many years. A life insurance policy payout can also be used to pay for college tuition and a cash value policy can supplement retirement income.
Now more than ever, it's crucial that consumers protect their financial security and plan for their family's future. Life insurance is the perfect investment for this purpose, and it is much more affordable than most people believe. Contact us to complete a simple needs assessment or to start a quote today.