While it is not fun to talk about, life insurance is a way everyone can prepare for the unexpected. Yet far too many people are taking an unnecessary risk by not protecting their loved ones with life insurance. That’s why each September Life Happens coordinates Life Insurance Awareness Month. This industry-wide campaign is aimed at educating Americans about the importance of life insurance and helping them get the coverage they need.
What Does Life Insurance Do?
First and foremost, it can replace lost income for your loved ones if you leave behind a spouse or children who depend on your paycheck to cover day to day expenses. Currently, 1 in 3 households would have immediate trouble paying living expenses if the primary wage earner died, according to the 2016 Insurance Barometer Study by Life Happens and LIMRA.
How Do You Know If You Need Life Insurance?
One of the most fundamental questions you should ask yourself when contemplating life insurance is this: Will someone in my life be adversely affected (from a financial standpoint) by my untimely death?
Here are a few additional situations to consider:
- If You Were To Die Tomorrow, Who Would Assume Your Debt? If you own a home, a business, or have personal liabilities, someone else will become responsible for those liabilities (generally your next of kin). Therefore, your spouse, your parents or your siblings could end up having to pay your debts after the good Lord takes you.
- Do You Have Children?Guess what? If you have kids and you don’t have life insurance, you may have put your entire family at risk. That seems a bit harsh but it is a potential reality.
- Are You A Business Owner? What would happen to your business if something were to happen to you? Do you have a succession plan? If you a business owner and do not have a succession plan, speak to a financial advisor to get you on track to help you create one. This could mean purchasing some type of insurance product and creating some documents determining who would inherit your business and its assets and liabilities.
Have questions about life insurance? We are here to help choose the policy that works best for you, review how much life insurance you need and determine how you can fit it into your budget. Contact us today to learn more.