September is Life Insurance Awareness Month (LIAM), when the life insurance industry endorses the value and affordability of life insurance.
This year’s Insurance Barometer Study by Life Happens and LIMRA includes some findings that illustrate the importance of LIAM.
First, only 51% U.S. adults own life insurance, down from 62% in 2013.
More encouragingly, though, people largely recognize the value and importance of life insurance. Many people who don’t own it say they need it (62%). Plus, many who have coverage say they need more (22%). Together, this need gap represents 102 million Americans.
The challenge is how to educate and motivate these people into action.
Fortunately, one doesn’t have to look far for ideas. Financial professionals in all 50 states have first-hand knowledge of the importance of life insurance, which they share with their clients.
Listen to Kimy Smith, a financial professional from Danville, Calif., whose client lost her husband.
“She was very lucky that he had purchased a life insurance policy. You know, early on his intent was to maybe pay off the mortgage, that type of thing. But you know what? This is what she’s going to be living on for the next 20, 25 years of her life. And without this money from the life insurance policy that they had purchased, she would be probably looking at, you know, the remainder of her life on public assistance, which is kind of a scary, scary prospect.”
Or ask financial professional Natasha Donaldson of Bluffton, S.C., who will never forget the first death claim she paid in her career.
“It was a good friend of mine, and I knew the family really well, and my friend’s husband passed away unexpectedly. He was 51 years old, and they were going to grow old and die together the same day. His heart valve ruptured.
“And you know, when people buy life insurance, they don’t buy it because they want to die. They buy it because they care about their loved ones. And it, you know, having that money come in — even though you know, nothing could have brought their loved one back — but having that chunk of funds hit their bank account meant they could remain in the home that they had just built, literally a year before this happened. Their daughter could go to college in a year and not have to worry about where the money came from. They weren’t going to have to sell everything and move in with family, because that was just money coming in.
“As morbid of a topic as it is, it’s a smart way to protect against the risk of, you know unexpected stuff happening. We all say, unfortunately, bad things happen to good people sometimes for no apparent reason. And it’s not fair. And you can hope and pray that doesn’t happen. Or you could plan. And that’s what we’re here to help with: educate, help and protect.”
Diane R. Boyle is the senior vice president of government relations for the National Association of Insurance and Financial Advisors. Her responsibilities include the development and implementation of legislative and regulatory strategy, and daily execution of association activities to provide advocacy services for insurance and financial professionals to support a private, competitive insurance marketplace.
