September is Life Insurance Awareness Month, which is a great time to learn more about life insurance and its importance as a financial protection tool. It is estimated that 53 million adults in America believe they need life insurance or more coverage. However, many people, including Millennials and Gen Z, perceive life insurance to be expensive when it’s actually more affordable than they think.
There are now various digital platforms and tools available that make it easier to find life insurance coverage that fits your budget. The life insurance industry has embraced rapid innovations in technology, making the purchase process simpler and more accessible. In many cases, you may not even need to undergo a medical exam, and you can acquire coverage in just a few days.
While the primary purpose of life insurance is to provide a death benefit, many policies also offer cash value that you can utilize during your lifetime. These “living benefits” can help cover medical expenses and personal financial needs. By consulting with a financial professional, you can determine the right life insurance policy for your specific lifestyle and needs.
One of the main reasons to consider life insurance is to leave a financial legacy for your loved ones. In the event of your death, life insurance can provide financial protection by replacing your income. This ensures that your family can maintain their standard of living and meet ongoing financial obligations, such as mortgage payments or outstanding debts.
The cost of living has been increasing due to inflation. According to Moody’s Analytics, U.S. household costs have risen by $709 per month compared to two years ago, and an additional $202 per month compared to last year. Planning for the unexpected is crucial, and life insurance can help provide financial security to navigate these uncertain times.
Although the topic of life insurance may seem complicated, there are many resources available to assist you in making informed decisions. Research different insurance products, consult with a financial professional, and take the necessary steps to ensure that your loved ones are financially protected in your absence.
Remember, when purchasing a policy, start small if needed, and work with a financial professional who can guide you through the process. Life insurance is an affordable way to replace income, supplement retirement, and create long-term financial security for you and your family.
Keep in mind that the issuance of a policy may depend on your health status, and outstanding loans or withdrawals may reduce the policy’s cash value and death benefit. Therefore, it’s essential to carefully consider your options and understand the potential tax consequences.
Life insurance is a valuable tool that offers both financial protection and peace of mind. Use Life Insurance Awareness Month as an opportunity to educate yourself and take proactive steps towards securing your financial future.
Issuance of the policy may depend upon the answers to the health questions set forth in the application. Outstanding loans and withdrawals will reduce policy cash values, and the death benefit and may have tax consequences. Life insurance is issued by The Prudential Insurance Company of America, Newark, NJ, and its affiliates.