September is Life Insurance Awareness Month so what better time to clarify a few misconceptions.
According to LIMRA (Life Insurance and Market Research Association), Life Insurance Ownership in Focus, U.S. Household Trends, there are approximately 37.5 million households in the U.S. that have no life insurance coverage at all. And almost half of households that do have it, donâ€™t have enough to replace their income in the event they needed it.
But why is that? It seems like a no-brainer to have coverage for your familyâ€™s financial burdens if something happens to you, right? So why do so many Americans go without?
Lincoln Financial Groupâ€™s research shows that the #1 reason people say they donâ€™t have it is because itâ€™s too expensive. But it doesnâ€™t have to be. In some instances, it can cost less than your monthly utility or cell phone bill.
Another LIMRA study showed that about 108 million Americans say that they have coverage through their employer but they may not even know how much or what company itâ€™s with. That wonâ€™t do you much good!
Some people may be so intimidated by the process that they just avoid it. However, there are some life insurance policies available now that can be bound within 24 hours with no blood test or medical exam.
Others may think it isnâ€™t necessary if they donâ€™t have children or they arenâ€™t sure who to make the beneficiary, but you can always have multiple people as beneficiaries and it doesnâ€™t have to be a blood relative.
Same goes for those that think because they donâ€™t own a home, life insurance isnâ€™t necessary. Thatâ€™s a common misunderstanding that we hear often. However, a mortgage isnâ€™t the only financial burden your loved ones could face in your absence.
Stay-at-home Moms tend to think they donâ€™t need coverage because Dadâ€™s income wouldnâ€™t stop if something happened to Mom. Who will care for the kids? Mom was awfully nice to do it for free but itâ€™s highly likely to cost a pretty penny for anyone else to step in.
We think life insurance is extremely important all year round but wanted to share these tidbits to hopefully spread some awareness this month in particular. Make smart choices and donâ€™t let unpaid bills overshadow the legacy youâ€™ll leave when youâ€™re gone.
As always, weâ€™re happy to help guide you on your life insurance journey and can answer questions anytime: 352-371-7977 or [email protected].