September marks the end of summer, which means vacations are ending, and work and school are ramping back up. It also happens to be Life Insurance Awareness Month. Consequently, September is an excellent time for people to learn more about life insurance and explore if a life insurance policy is right for their needs. This article will discuss Life Insurance Awareness Month in more detail and explain why people should consider getting a life insurance policy.
What is Life Insurance Awareness Month?
September was named Life Insurance Awareness Month to focus on what the life insurance industry does and how life insurance can benefit policyholders. Here are some things to know:
1. Life insurance is older than Life Insurance Awareness Month
Life insurance, in some form, stretches back through almost all of human history. It has evolved to adapt to changes in civilization over time. The first life insurance company in America was the Presbyterian Ministers’ Fund, founded in 1759. However, it wasn’t until 2004 that industry group Life Happens named September Life Insurance Awareness Month to help educate the public about how life insurance benefits families.
2. The pandemic made people more conscious about life insurance
One outcome of the pandemic is that it helped people see the importance of getting life insurance to provide added financial security for their loved ones. Life insurance pays beneficiaries a death benefit, allowing them to replace the policyholder’s income and pay off debts. In addition, Life Happens found that conversations changed due to COVID, and life insurance became one of the most important topics families discussed when it came to finances.
3. Many Americans don’t feel they have enough coverage
The Life Insurance Marketing Research Association (LIMRA) found that 41% of Americans say they don’t have enough coverage. Their research also uncovered that historically underserved markets have even more significant coverage gaps. Life Insurance Awareness Month can equip people with information on calculating the coverage they need, helping them reduce coverage shortfalls.
4. It’s an ideal time for policyholders to check in on their existing policies
Checking on their life situation and comparing it to their current coverage is key for those who already have a life insurance policy. For example, someone may need a larger death benefit if they just had a new child. Life Insurance Awareness Month is a great time for policyholders to check their coverage and update it if necessary.
Why get life insurance?
There are numerous reasons to get life insurance this Life Insurance Awareness Month. Here are a few:
1. To protect loved ones
The main benefit of life insurance is the death benefit that protects loved ones. If the policyholder passes away while their policy is in force, loved ones receive that death benefit and can use it to create financial security.
2. To replace income
Life insurance can be a great idea for those who are the primary breadwinner. If they pass away unexpectedly, loved ones can replace their income with the death benefit.
3. To build wealth
Permanent life insurance policies come with a cash value growth component. A portion of each premium goes into this component, which grows tax-deferred at a specified rate. Once the policyholder’s cash value grows enough, they can borrow or withdraw from it. If they surrender the policy, they get the full cash value minus surrender charges.
Get a life insurance policy this Life Insurance Awareness Month
Life Insurance Awareness Month helps educate people about life insurance’s many benefits. After the pandemic, its mission is more important than ever. Whether someone is getting their first policy or needs to adjust their coverage, there’s no better time than the present.
Potential policyholders should remember to shop around if they’re getting a new policy or if they aim to replace an existing policy with a new one. This will help them get the coverage they need at an affordable rate this Life Insurance Awareness Month.