Each September, the insurance industry comes together to recognize Life Insurance Awareness Month – a month dedicated to educating people about the value of life insurance and helping them understand the coverage that is best for them. There are over 106 million Americans living with a life insurance coverage gap which is why we find it crucial to raise awareness and emphasize just how important life insurance can be*.
What is Life Insurance?
Life insurance is about preserving the future that you’re building financially and ensuring that those who depend on you are protected in the unfortunate event of your passing. Without it, the people who rely on your income might suffer financially. In fact, 4 in 10 families say they would face financial hardships only six months after the passing of a primary wage earner*.
It’s never too early or too late to purchase life insurance. As you get older, your risk of death continues to increase, and so do the premiums for life insurance. This means the best time to purchase life insurance is right now.
Life Insurance Options
Choosing the right plan can be overwhelming and often confusing as there are different types of life insurance to consider. Life insurance typically falls under two general categories: term and permanent.
- Term life insurance provides protection for a specific amount of time, and usually offers affordable premiums. If eligible, you may be offered an employer-paid policy up to a certain amount at no cost to you.
- Permanent life insurance may have higher monthly premiums, but it ensures lifelong protection as long as premiums are paid. It is a solid companion to your group life insurance plan.
Both options could be either tied to a group plan or portable where you can continue paying premiums if you leave employment. Additionally, both plan types provide coverage that will allow your loved ones to maintain their current standard of living. The benefit amount can be used for expenses such as mortgage/rent payments, college tuition or simply saving for the future.
Different life insurance plans work for different people. What’s important is the peace of mind you’ll have knowing your loved ones will be financially secure even if you and your income are no longer present.
To find the coverage that best suits you, visit your Employee Benefits Center and see what life insurance plans are offered by your employer. You can also contact your First Financial Account Manager if you have questions about your existing coverage.
*LIMRA: 10 Facts About Life Insurance That Might Surprise You; Sept 2022, https://www.limra.com/liam/
