Across the country, insurance professionals come together every year to observe September as Life Insurance Awareness Month. This campaign is designed to highlight the importance of life insurance and educate consumers on their coverage options so they can make informed decisions when buying a policy. In a recent study conducted by the Life Insurance and Market Research Association, more than half of Americans have life insurance. However, policy purchases are on the decline, and there are still 41 million people without coverage to protect their family. The following information explains some key aspects emphasized by the campaign.

A Guide to Life Insurance

Who Needs It?

Unexpected events occur every day, and life insurance can fulfill a broad range of needs. For this reason, it plays an essential part in any good financial plan. Most adults should consider getting a policy whether they’re the breadwinner of the family, stay-at-home parent, business owner, millennial with student loans, or grandparent who wants to leave their loved ones with an inheritance. While the general rule of thumb is that you should have coverage if someone else depends on you financially, for many people, it also makes sense as an additional investment opportunity.

What Are the Types of Policies?

The two main kinds of life insurance are term and whole life policies. Term coverage is a lower cost option that lasts for a specified number of years. Should the policyholder pass away within this timeframe, their beneficiaries will receive death benefits. A whole life policy provides coverage for the rest of the policyholder’s life and includes a cash value component. This allows a portion of each premium payment to build up as savings, which can be withdrawn and used while the policyholder is still alive.

What Are the Benefits of Coverage?

The primary purpose of life insurance is to ensure loved ones continue to have financial stability once the policyholder is gone. Death benefits can be utilized to help pay for a wide array of obligations, including everyday household expenses, a mortgage, outstanding loans, credit card bills, a child’s college education, and funeral costs. There are also tax advantages to owning a policy. Payouts are typically considered tax-free income, and a life insurance trust can help transfer money to beneficiaries with fewer liabilities.  

For help securing a life insurance policy that meets your specific needs, turn to Lighthouse Agency in Fairfield, OH. They offer a variety of coverage solutions, and their agents will customize a plan that maximizes your family’s financial protection. Since 1996, this independent agency has been committed to providing quality insurance products at competitive rates. Call (513) 860-9100 to request a quote, or visit them online to learn more about their services.