This September kicks off the 20th year of Life Insurance Awareness Month. While talking about life insurance needs can be uncomfortable, planning ahead will alleviate many of the tough conversations had by the individuals you leave behind. In the 2023 Insurance Barometer Study, conducted by Life Insurance Marketing and Research Association (LIMRA) and Life Happens, just 52% of the adult respondents reported owning life insurance.1 The purpose of Life Insurance Awareness Month is to educate individuals about the importance of life insurance and its role in protecting families’ financial security.2
There are many different types of life insurance policies. However, all types will fit into one of two main categories: permanent life insurance and term life insurance. Permanent life insurance is exactly what it sounds like. As long as the premiums are paid, the person (called the “insured” in life insurance speak) is covered for their lifetime.
Term life insurance is different; in this case, the insured is covered for a set period of time (“term”) and the insurance company will only pay the death benefit if the insured passes away during that term. A common example of term life is life insurance that is offered by your employer. An employee is covered while they are working and when they leave their employer, in most cases, the life insurance coverage ends.
So, which is better: term insurance or permanent insurance? The answer depends on you and your unique insurance needs. We’re here to help you identify your needs and determine which option may suit you best. Please contact us with your questions. You can also visit www.lifehappens.org for more information.
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