Many Americans can benefit from life insurance coverage in a number of ways, but may not think it's the right choice for them based on their specific financial situations. But with September being Life Insurance Awareness Month, the industry is trying to dispel the common misconceptions about what life insurance can do for families, what it costs, and more.
To that end, race car driver Danica Patrick is trying to get the word out about how much life insurance can help everyday consumers, even if they think such coverage is beyond their reach, according to Insurance News Net. That includes efforts to educate potential policyholders about all the options that might be available to them and just how dire their financial straits might end up being if they don't have coverage but a family member unexpectedly passes away.
"Your financial fitness is also something else that plays into your well-being, and can reduce stress and give you one less thing to worry about," Patrick told the site. "There are so many things in the world that we can't prepare for and I am a firm believer that if you can prepare in any way for something, then you should."
Digging into the numbers
About 1 in every 3 households nationwide today would have difficulties keeping up with their everyday expenses if the primary age earner were to pass away, but the disparity when broken down between families with and without life insurance is stark, the report said. Half of all families that aren't covered by life insurance say they would fall into that category, compared with just a quarter of those with such coverage.
With this in mind, it's vital for everyone - even those who already have life insurance - to regularly assess their coverage needs, according to the Huffington Post. That's because as life goes on, circumstances change. That will often necessitate a careful examination of their expenses and what they will need to cover those costs, for potentially years, in the event of an unexpected death. For instance, coverage that might have been sufficient for a family that was renting its home and only had one child wouldn't be sufficient if they made a home purchase and had another kid.
That sort of homework can certainly help to ensure primary wage earners can keep their loved ones financially protected for years to come.
Getting over the concerns
There are perfectly understandable reasons why people may not think life insurance is right for them, but a little education can go a long way, according to Life Happens. Something as simple as knowing the difference between universal and term coverage can make a huge difference for families looking for the right option that fits within their budgets.
Life Insurance Awareness Month just highlights the need for insurers and brokers alike to make sure they're doing enough outreach to help people really understand the benefits of coverage and what options may be available to fit just about any budget.