It is that time of year again, September 2013 for Life Insurance Awareness Month. This is a month set aside by Life Insurance and Market Research Association or LIMRA back in 2003 and is now in its 10th anniversary year. It was created to raise awareness among consumers and producers about the need for life insurance. With disposable income at an all-time low, American families have to make difficult decisions to determine their financial priorities. Unfortunately, life insurance is not at the top of the list. Yet, many American families say they could not last a month without the breadwinner’s salary. Now more than ever, it is vital that consumers protect their financial security. Life insurance has been providing this kind of protection to Americans for more than 200 years. Let’s take a look at just how the statistics stack up.
According to LIMRAs research, over 30% of US households do not have life insurance. A staggering 55% of US households or 58 million people admit they do not have enough life insurance and need more. Not only are average US families not buying enough life insurance but those households that do have life insurance have had their face amounts decrease over $30,000 average since 2004. The most alarming number comes from a survey stating that 70% of US admit they would have serious financial problems if the primary breadwinner were to die within just a few months including 30% of households admitting their problem would be immediate.
What can life insurance do for a family? It can buy loved ones time to grieve. It can pay off loans and provide surviving family members with the chance to move on with a clean slate of debt. It can keep families in their homes and pre-fund a child’s college education. It can keep a family business in the family or allow options for the surviving family members. It can provide a stream of income for a family to live on for years. Life insurance can do all of these wonderful things for your family, but there’s just one small catch. You need to own life insurance first.
Now the reason for Life Insurance Awareness Month or LIAM, is quite simple, with 70% of US households admitting they either do not have life insurance or do not have enough life insurance, every American should be aware of the availability and affordability of a good life insurance policy. I suggest reading Life Insurance 101 to learn about the different types of policies and determine which may be the best fit for your unique situation. I also recommend using an experienced qualified life insurance agent or broker. According to LIMRA only about 16% of US consumers purchase their life insurance online. The remaining 84% would like some professional guidance. We highly urge you to contact a life insurance agent in your area to sit down and explain all of your options. Life is too short and too precious to gamble with your family’s future. Be aware during September of Life Insurance Awareness Month.
“I don’t want to tell you how much insurance I carry with the Prudential, but all I can say is: when I go, they go too.”—Jack Benny
Photo courtesy of http://www.limra.com/liam/
Tim Wilhoit is owner/principal of Your Friend 4 Life Insurance Agency in Nashville, TN. He is a family man, father of 3, entrepreneur, insurance agent, life insurance broker, salesman, sales trainer, recruiter, public speaker, blogger and team leader with over 26 years of experience in sales and marketing in the insurance and beverage industries.
This information is great. I will share it with my team and we will move forward. Sharing the good news of Life Insurance.
Tammy thank you for your kind words and sharing my blog. I am glad you found it helpful.
You are welcome:) Enjoy your wonderful and fabulous day.
What consumers also have to be careful of is to deal only with authorized insurers and licensed insurance agents. Insurers are “authorized” to transact the business of insurance in a state when, for the most part, they meet stated financial requirements and when their policy forms comply with state requirements. This is because insurance is regulated by the states and not by the federal government.
Likewise, it is critical that consumers deal only with and through licensed insurance agents. Insurance agents are licensed by the state insurance regulatory authority in which he/she conducts business. The consumer should contact the regulator to ensure licensure. Likewise, the consumer should make sure that the agent is “appointed” by the insurer in which the consumer is interested. “Appointed” means that the agent has been designated as being authorized to represent the insurer. That appointment will be of record with the state insurance regulator.
Luke, you are 100% accurate. Thank you for sharing.
HEADLINE TO ALL CONSUMERS –
ARE YOU IMMORTAL? DO YOU CARE ABOUT SOMEONE OR SOME CHARITY, COLLEGE, HOSPITAL WHEN YOU DIE? IS LEAVING INCOME TAX FREE MONEY TO THAT PERSON IMPORTANT TO YOU?
iF SO, THEN WE NEED TO TALK FOR 10 MINUTES.
The primary benefit in term or permanent life insurance is the death benefit.
How much? What is it for[the goal]? Do you qualify? What can you pay? For how long?
The rest of it such as building a nest egg, emergency fund, etc. is secondary.
Business Insurance – Whole different needs and solutions.
In the many seminars I have done over the years, there is ALWAYS some older guy at the back of the room that says ” I don’t BELIEVE in life insurance.”
My reply. I don’t know what that means? You mean you don’t believe it exists, like the earth is not flat? No, no, wait for it……..her it comes . “Life insurance is a WASTE of money!” Really? Let’s explore this for 5 minutes. Sir, are you immortal? If not, then allow me to update you on some facts for 2013, not 1972. And into the important facts on the screen.
Public ignorance on many subjects is rampant, but you have to have a SIMPLE message to grab their attention and talk to them personally.
Thom, I admire your passion. If you say this to people, you have more guts than me. You say what most of us life insurance brokers think. I really appreciate your sharing.
The definition of adequate insurance cover depends on many factors. Their economic standard, the family history i.e.the age at which the terror struck the bread winner in the family tree, their present occupation and their care for the family as to how much to provide if something happens to the bread-winner of the family.
Since 99.9% of us can’t predict our death, we should buy life insurance like we are going to die tomorrow and invest our money like we are going to live to be over 100 years old.