Business Transformation | 09.19.23

Life Insurance Awareness Month: Why It Should Be a Year-Round Event

by: Bob Mittel

September is traditionally celebrated as Life Insurance Awareness Month, a time when individuals are encouraged to review their life insurance needs and assess their financial protection. While this annual event is essential, maybe it's time to consider why it should be a year-round initiative focused on enhancing financial wellness and assisting clients in meeting all their protection needs. Every comprehensive financial plan should include a life insurance needs review and a thorough policy review of existing coverage. In this article, we'll explore the reasons behind this proposition and the benefits it brings to individuals and families.

1. Life Insurance is a Crucial Financial Tool

Life insurance serves as a vital component of financial planning, providing a safety net that protects your loved ones and assets in the event of your untimely passing. However, it's more than that. Life insurance policies come in various forms, each with their unique features, such as cash value growth and living benefits like disability and critical illness coverage. These elements make life insurance policies versatile tools that can address different financial goals and needs throughout your life.

2. Evolving Financial Goals and Needs

Financial goals change as individuals progress through various life stages. Whether it's buying a home, starting a family, sending children to college or planning for retirement, life insurance can adapt to these evolving goals. An annual life insurance review can help ensure that your coverage aligns with your current and future objectives. It can also identify opportunities to adjust or expand your coverage to accommodate new financial responsibilities.

3. Protection Against the Unexpected

Life is full of uncertainties, and unexpected events can jeopardize your financial security. Beyond traditional term life insurance, permanent life insurance policies like whole life and universal life offer features that can provide financial stability in times of crisis. For example, the cash value in these policies can be tapped into for emergency expenses or as a supplement to retirement income. Regular reviews of these policies can help ensure you are maximizing their benefits.

4. Estate Planning and Wealth Transfer

Life insurance plays a pivotal role in estate planning and wealth transfer strategies. By designating beneficiaries and managing the tax implications of an estate, life insurance can help pass on assets efficiently to the next generation. As your financial situation changes over time, it is crucial to reevaluate life insurance policies to make sure they align with estate planning objectives.

5. The Importance of Professional Guidance

Life insurance is a complex financial instrument with various options and features. Many individuals may not fully understand the intricacies of their policies or how these policies fit into their overall financial picture. That's where financial institutions and their advisors can make a substantial difference. Encouraging clients to engage in regular life insurance reviews provides an opportunity for us to offer value-added services and demonstrate their commitment to the financial well-being of their clients.

6. Consistency in Financial Wellness

So, that is a lot to digest — which is why the concept of Life Insurance Awareness Month should not be confined to a single month. Instead, it should be integrated into a year-round financial wellness program offered by all financial institutions. By doing so, we can create a culture of financial responsibility, helping clients stay on top of their protection needs and financial goals throughout the year. So, are you with me? Celebrate Life Insurance in September — but be sure it is always front and center of your clients!