Young people can benefit from sorting out their financial strategy early on, but this goes far beyond just having a solid budget and money saved in the bank. There are many other facets to having a successful situation and looking at other options such as investments for the future. One of these is life insurance, and having a specific plan is important in order to be ready for what lies ahead.
September is Life Insurance Awareness Month, and it is led by the Life and Health Insurance Foundation for Education. There are many reasons individuals take out life insurance, whether it be to cover death expenses, ensure that assets are kept or even help bankroll a family in a time of need. Many people use this insurance differently, as it is so versatile.
However, there are some issues with life insurance, the organization explained. One of the main problems is how underutilized it is. A recent measurement showed that it is not used as much as it was six years previous, to the tune of 11 million homes. Another major pitfall is the fact that adults are not sure how much they should have, leaving them with too little. This can be a problem if a major incident occurs and they are not properly covered.
Many reasons to have life insurance
Getting life insurance is something that many people consider at some point in their lifetime. This could be a notably strong aspect of their financial plan, especially as they begin to build wealth and start a family.
Finances can be an issue for a sizable portion of working people, and not having proper coverage can make life difficult. Citing LIMRA, LIFE noted that close to three-quarters of adults feel they are in need of life insurance, but fewer than two-thirds actually have it.
There are also hazards that may make life insurance more important. Citing the National Association of Insurance Commissioners, women between the ages of 35 and the day they retire have a more than 30 percent chance of being injured and unable to work for three months or more. For men, this is a 20 percent chance.
LIFE was created in 1994 to help promote life insurance, and not only spearheads Life Insurance Awareness month, but also two other related months. The first is Insure Your Love, which is observed in January and February, as well as Disability Insurance Awareness Month in May.