Why Life Insurance Awareness Month Matters
Every September, the life insurance industry recognizes Life Insurance Awareness Month, an effort to encourage more people to think about whether they have the coverage their families may need. Industry research has repeatedly found that a significant portion of adults either don’t have life insurance or believe they don’t have enough, often because the topic feels overwhelming, or because people overestimate how much a policy is likely to cost and assume it isn’t within reach. Setting aside even a small amount of time this month to think through your own situation can be a meaningful step toward closing that gap.
Start With Your Financial Picture
One of the most common questions people have is how much life insurance coverage actually makes sense. There isn’t a single number that works for everyone, but a useful starting point is to think about your outstanding debts, such as a mortgage or car loans, along with ongoing expenses your family would need to cover, like childcare, education costs, or daily living expenses.
Consider Your Family’s Long-Term Needs
Beyond immediate debts and expenses, it helps to think about longer-term goals, such as helping children pay for college or ensuring a spouse or partner could maintain their current lifestyle without your income. Some people also factor in funeral and final expenses, which can add up more than many families expect. If you or a partner contribute significant unpaid work at home, such as childcare or household management, it’s worth factoring in the cost of replacing those responsibilities as well, since that value is often left out of coverage calculations.
Term vs. Permanent Life Insurance
Life insurance generally falls into two broad categories: term life insurance, which provides coverage for a specific period of time, such as 20 or 30 years, and permanent life insurance, which is designed to last for your entire life and can include a cash value component. Each type serves different purposes, and many people choose term coverage to protect against specific time-bound needs, like the years until a mortgage is paid off or children are grown.
Don’t Rely Solely on Employer-Provided Coverage
Many employers offer a basic amount of group life insurance as a workplace benefit, which is a helpful starting point but often isn’t enough on its own. Group policies are also frequently tied to your employment, meaning coverage may end or become more expensive to continue if you change jobs or retire. Reviewing whether your employer coverage alone would be sufficient for your family is an important part of this conversation.
Common Misconceptions About Cost
Surveys conducted by industry groups during past Life Insurance Awareness Months have repeatedly found that many people significantly overestimate what a term life insurance policy costs, particularly for younger, healthier applicants. This misconception is one reason many people delay getting coverage or assume it isn’t within their budget. Getting an actual quote, rather than relying on assumptions, is often the most reliable way to find out what coverage would realistically cost for your situation.
Working With an Agent Instead of Guessing Alone
Online calculators can offer a rough starting point, but they often don’t account for details specific to your situation, such as existing savings, other insurance policies, or specific goals like fully funding a child’s education. An insurance agent can incorporate these details into a more complete picture and help you compare quotes across different coverage amounts so you can see how cost scales with your choices.
Take the First Step This September
You don’t need to have all the answers before starting the conversation. An insurance agent can walk you through your options and help you understand how different coverage amounts and policy types align with your goals and budget.
The Insurance Buffet can help you explore life insurance options that fit your family’s needs this Life Insurance Awareness Month. Contact us at (570) 562-1000 or request a quote today.
