Every September our John Bailey Company highlights life insurance. Some might question why we turn our lens toward life insurance every year. The truth is we understand life happens and a person’s life can change with each passing day. For sure celebrating a marriage can impact one’s insurance needs, as can buying a home, changing professions or employers, welcoming a first child or an additional child or sending your children off to college. So, let’s take a closer look at Life Insurance Awareness Month #LIAM19.
First, let’s review the latest statistics…
The Life Insurance and Market Research Association (LIMRA) works each year to join in with Life Happens’ Life Insurance Awareness Month. LIMRA’s goal is to assist with a fact sheet which can serve to create awareness about life insurance. On September 3, 2019, LIMRA offered the following statistics as gathered by the 2019 Insurance Barometer Study.
• 57% (nearly 6 in 10) of American consumers own life insurance
• 18% of the 57% have group life only
• 28% of the 57% have individual life only
• 11% of the 57% have a combination of individual and group
• Prime reasons for purchasing life insurance is to replace a wage earners’ income, leave an inheritance and pay for final expenses
• Consumers are likely to overestimate the price of life insurance
“It’s Not for You – It’s for Them!”
Now in its 15th year, Life Insurance Awareness Month has a new spokesperson – Brooke Shields. You can view her personal message here. Life Happens wants everyone to understand that “It’s not for you, it’s for them.”
On May 7, 2019, Life Happens published a press release announcing Ms. Shields’ partnership to spread the message of the importance of understanding life insurance.
“Serving as an executor of a friend’s will, Brooke saw firsthand the unique challenges that arise when someone passes without life insurance. These experiences – coupled with a deep commitment to protecting her family financially – reinforced for Brooke the importance of life insurance and teaching her daughters about financial planning and how it is a key component of personal strength and independence. Through the partnership with Life Happens, her goal is to demonstrate both the financial and emotional benefits that come from prioritizing life insurance.”
Helpful tips to consider when purchasing life insurance…
Investigating the pros and cons of purchasing or updating a life insurance policy can be daunting. In 2017, we published a post that outlined how to evaluate your life insurance needs and how to understand the difference between life insurance policy types: Term Life, Whole Life, Universal Life, Annuities, and Long Term Care. Consider these tips as your move through this process:
1. If you are debt free and financially independent and your estate would cover any taxes and end of life expenses, then you may not need or want any type of life insurance policy. However, if your life circumstances are not as described above, then plan to investigate a life insurance policy for yourself and other members of your family.
2. Military.com offers an easy “rule of thumb,” the amount of life insurance should be 10 times your yearly income. So, if you earn 60,000 per year, then your life insurance policy coverage should be at least $600,000.
3. Most agents suggest it is advisable to purchase your life insurance policy before or in your 30s. This suggestion is supported by a study conducted by NoExam. Remember two important factors for determining the insurance premium are health and age.
4. Premiums can be paid monthly, quarterly, biannually or annually. The Insurance Information Institute (III) suggests that you ask your agent to provide a premium payment quote for each type of payment schedule.
5. Once you’ve decided on a life insurance policy, selected and named your beneficiaries, paid your premium, then the policy will be issued. At this point, it is important for all concerned that your beneficiaries be made aware of your life insurance policy. Beneficiaries should know where the policy is stored and perhaps be given a copy of the policy declaration page (the Dec page), a summary of the key items regarding the policy.
Our John Bailey Company invites you to Insure a Great Life
During Life Insurance Awareness Month #LIAM19, our team would like to meet with you to discuss your life insurance needs. At the John Bailey Company, we represent some of the most reputable insurance companies in the industry. Our customer service driven team of licensed professionals serves as your biggest advocate. We work to provide unbiased advice about policy options and to find innovative solutions to suit your budget and your coverage objectives.
We invite you to contact us and insure a great life…both yours and your family members.