NAIFA is pleased to join our members and industry partners, including Life Happens, to commemorate September as Life Insurance Awareness Month (LIAM). Life insurance is a crucial part of a successful financial plan for many Americans. Unfortunately, many people are underinsured, leaving their families financially vulnerable.
According to LIMRA, only 52% of Americans have life insurance, and a significant portion of those don’t have enough. Altogether, 102 million Americans who understand that they need life insurance are either uninsured or underinsured.
LIAM provides a great opportunity for everyone to shine a spotlight on life insurance products and work towards improving those statistics. Many common consumer objections to purchasing life insurance (or purchasing enough) are either inaccurate or easily surmountable. These include:
- It’s too expensive. A professional agent, such as a NAIFA member, can help most consumers find life insurance solutions to fit their budget.
- They will buy it later. Purchasing life insurance early is often a good decision. Young and healthy people are generally able to get less expensive coverage. LIMRA found that nearly 40% of people who have purchased life insurance wish they had done so earlier.
- They don’t understand the products. Life insurance agents are licensed and are trained to understand the products they sell. NAIFA members, in addition, show a strong dedication to their profession and agree to abide by NAIFA’s Code of Ethics, which includes the requirement that they put clients’ interests first. Those who have earned NAIFA’s Life and Annuity Certified Professional certification have demonstrated product understanding beyond what is needed to be licensed and an ability to work with clients to fill their needs or solve specific problems.
- They are covered through work. While workplace plans are often an excellent benefit, many are not intended to provide long-term financial protection for an employee’s family, and the benefits almost always end if the employee should lose his or her job, get a new one, or retire.
- It's depressing. Many people are uncomfortable talking about providing for their families after they are gone. Experienced agents and advisors know how to have these sometimes-difficult conversations. In fact, knowing that they are providing financial security for their loved ones can put many consumers at ease.
- They don't want to take a medical exam. There are options. Some policies require only limited evaluations or do not require exams. Trends favoring accelerated or automated underwriting have grown in recent years. When exams are still needed, licensed agents can shed light on the underwriting process. They can help consumers feel more comfortable and understand that medical exams can be made convenient for the client.
While life insurance is important every day of the year, NAIFA is proud to acknowledge September as Life Insurance Awareness Month. It's a time our industry can come together and focus our efforts on promoting life insurance for the benefit of families across the United States.