With September being Life Insurance Awareness Month, we are touching down on the key function life insurance plays in a financial plan for families and individuals.
We need to focus our attention on the needs of life insurance. It is not for those who are retired, or starting to plan for retirement, it isn’t just for families or newlyweds, or for those who want to leave a legacy behind. IT IS FOR EVERYONE!
Life insurance can help with long-term care planning, final expenses, estate planning, and so much more.
Roughly, 70 million adult Americans have NO life insurance and 11 million households with children under the age of 18 have NO life insurance-and to finish that off, those who do have life insurance have far less coverage than most financial experts recommend.
Most people in their middle ages wish they would have taken care of their life insurance when they were younger, and say if they had they would have saved a lot of money.
How to start a conversation about life insurance
Having a conversation with family and loved ones about life insurance is not fun or easy. We are faced with the topics of death, healthcare, finances, estate planning and taxes. But it is a conversation that is needed-with everyone and shows your family and loved ones that you care.
There are ways to start the conversation and that is the hardest part. Ask questions and listen to the answers closely. For example:
Asking questions to a parent.
Let them know you want to make sure they are taken care of. This will include taking care of things when your parent‘s pass. Do you currently have life insurance? Do you have a plan in place for your final expenses and any debts that may need to be paid off?
Asking questions to a spouse or partner.
We don’t always talk about our finances and whether we want to or not, we need to discuss what happens to the family and our assets if we pass. We also need to figure out how much life insurance each of us need. What does our financial situation look like today if one of us passes unexpectedly? Will the family be taken care of financially in this tragic event and be able to live within the same lifestyle we have now?
Also, share an example of a friend’s parent who passed and how grateful the family was that he was prepared for his passing and all final expenses were taken care of with his life insurance policy. Or, you could have a parent or spouse who was unprepared for their passing and left debt for the family/loved ones to have to cover. You see on social media, people raising money for help to cover the cost of a family member or loved one for funeral or medical expenses because there was no life insurance.
The pandemic has made us more comfortable talking about tough things
A prime example is the Pandemic. This has made people more aware and comfortable with having that difficult conversation of planning for death and this is a way to lead the topic of life insurance in a conversation. Discuss how it has made you feel and how it makes them feel. Then lead into the life insurance questions.
The topic of life insurance is difficult to talk about but very necessary to have. The sooner the better. Make a plan today to have the conversation with your family and loved ones. Write down your questions you want/need answers to and contact a financial professional to help with your life insurance needs.
