Page 2 – Life Happens

Meet Sirin Thada, Artist in Residence for Life Happens

by Devin Pascoe | September 7, 2023 | Life Insurance | 0 comments

Artist Sirin Thada smiles at camera Earlier this year, we partnered with Thai-American artist Sirin Thada to create illustrations that reflect the theme, Life Insurance: For Anyone Who Lives.

Here’s a closer look at her process and what she had to share about her work.

Lightning Round with Sirin

What are three words to describe your artistic style?

Warm, vibrant, wabi-sabi.

What is one thing most people would be surprised to know about you?

My first real job was working as a lawyer at a big NYC law firm.

How would you explain life insurance in five seconds?

It’s peace of mind. If the worst were to happen, life insurance gives you the chance to help the ones you love, at a time when they will definitely need that comfort and help the most.

A Closer Look

Life Happens: How did you get started as an artist?

Sirin Thada: I’ve been drawing for as long as I can remember. It was something I always loved as a kid and just never stopped doing. I made sure to carry paper and pencil with me everywhere, and it was like having a best friend with you all the time. I didn’t actually make the leap to full-time illustration and art until much later in life. It was only after trying a few different career paths, and much soul-searching, that I realized art was the only career for me, despite how daunting the path seemed. But it’s always been a part of who I am and how I process the world.

LH: How would you describe your style?

Sirin: I love visible brushstrokes, ink bleeds and watercolor bloom—marks of human touch. My compositions tend to be tight and carefully considered, and I like juxtaposing them with paint, a medium that is unpredictable and has a life of its own.

LH: How did you come to the final work of art for this project? What was the process like?

Sirin: Even for me, talking about money and financial planning used to induce a lot of anxiety and stress. And no one wants to think about the possible death of a loved one. But the fact is, we all age, we get sick, and like all things in life, we are impermanent. Rather than letting fear of the inevitable paralyze us, why not choose to proactively enjoy every moment in life? If we accept there will be ups and downs, why not take the little extra step to prepare for the downs? Ultimately, I wanted the art to reflect what life is like when you embrace its nature fully, and these were the kinds of questions I asked myself in the process.

LH: What were you hoping to convey with your illustrations for Life Happens?

Sirin: On the theme of how life insurance is “for anyone who lives,” I wanted to convey just what “living” is truly about. It is more than just day-to-day surviving: It is about connecting, caring and thriving. From celebrations to family dinners to quiet nights alone reading, there is beauty in all those everyday moments. Life is unpredictable, but when you accept that unpredictability and face it without fear, and with a little bit of planning, you can appreciate those everyday moments with even greater ease and joy.

Artist Sirin Thada's desk with paintbrushes and illustrations

LH: Did you ever hear about life insurance growing up?

Sirin: Not really. As immigrants, my parents’ primary concern was making enough money to start their new life in America. They spent so much time working, to provide a good life for me and my brother, that teaching us about things like life insurance, and financial planning in general, were topics that kind of got lost during our upbringing. I’m sure the language barrier didn’t help either. So, I’ve been a bit late to achieving financial literacy, but I’ve been getting there over the years!

LH: What did you learn about life insurance? Have any of your views about life insurance changed since working on the project?

Sirin: As a full-time freelancer whose income varies widely from month to month, I’ve always been worried about things like health and disability insurance, retirement, and yes, life insurance. My husband and I have a few friends who quite tragically lost their partners. In some cases, children were in the picture too. Watching them get caught in a blinding storm of sorrow and grief, of just having lost their best friend and the entire life they shared, while also trying to arrange funeral plans, sort through finances, pay bills, and just eat, sleep, and stay afloat… It’s easy to see how life insurance would be the greatest balm at a time like that.

It means a lot to me to know that if the worst were to happen, I could still pay my mortgage and meet my basic needs until I regained a little bit of balance. Regardless of your budget, just a little forward-thinking can help ensure you are on the path to living your most fulfilling life with love and intention.

You can follow Sirin Thada on Instagram at @sirinthadastudio. To order Sirin’s artwork as a print for your home or office, click here. You can select your own dimensions, and the print will be shipped straight to your address.

Celebrating 20 Years, 20 Moments of Life Insurance Awareness Month

by Devin Pascoe | September 1, 2023 | Life Insurance | 0 comments

Life Happens’ 20th annual Life Insurance Awareness Month (LIAM) is officially here! This September marks the 20th anniversary of our biggest campaign, and we’re celebrating all month long. Join us throughout September for 20 Years, 20 Moments, a calendar of events for each weekday during the month. Download the calendar here. From taking the Life Insurance Pledge on September 8, to sharing a memory of a loved one who has passed away on our Memory Wall on September 12, to using one of our free digital postcards to thank your insurance agent on September 22, the calendar is full of simple ways to spread awareness for the importance of life insurance. Save the dates!

20 Years, 20 Moments of Life Insurance Awareness Month calendar

Plus, download and share the graphics in our free Graphics Library (September 15, or any time!) on social media to join the conversation about the importance of life insurance and help raise awareness! Don’t forget to tag us at @lifehappens on Instagram or @lifehappens.org on Facebook and TikTok, and use our campaign hashtags #GetLifeInsurance and #LIAM23!

If you’re looking to take that next step and get life insurance, we know the perfect place to begin:

Check out our Life Insurance 101 information as a first step (also available in Spanish). As a nonprofit, we’re here to give unbiased information that can help more people get protected with life insurance. We don’t sell anything, and we don’t endorse any particular insurance products. Our mission is only to help educate you.
Estimate your coverage needs by using our Life Insurance Needs Calculator in English or Spanish. The amount of coverage to buy depends on who you want to protect financially and for how long.
Then, find an insurance professional in your area. It can be helpful to work with a professional who can answer any additional questions you may have and offer solutions for your unique situation.

There’s no better time than Life Insurance Awareness Month to get coverage. Life insurance is for anyone who lives!

Why Life Insurance Should Be Part of Every Entrepreneur’s Business Plan

by Catherine Schwartz | August 17, 2023 | Life Insurance | 0 comments

As an entrepreneur, you already know that many risks and uncertainties come with running a business. However, there is one crucial element that often goes overlooked in many entrepreneurs’ business plans: life insurance.

It may not be the most glamorous topic. Still, when it comes to safeguarding your family, your legacy and the very future of your business, life insurance becomes an indispensable tool. So, if you’ve been neglecting getting coverage, thinking it’s just another expense, or perhaps dismissing it as unnecessary, it’s time to reassess.

Let’s look at how it can help both your loved ones and your business.

Benefits of Life Insurance for Entrepreneurs and their Families

Integrating life insurance into your business plan can provide a multitude of advantages for both you and your family.

1. Repaying any debts

Entrepreneurs often shoulder substantial debts, whether a business loan, credit lines or personal obligations incurred during the start-up phase.

Life insurance can provide a financial safety net for your loved ones in the event you pass away. The proceeds from your life insurance policy can be used to repay these debts, ensuring that your family is not responsible for settling them.

2. Funding ongoing expenses

As an entrepreneur, you undoubtedly want to provide the best possible future for your spouse, children or other dependents. Life insurance is a key part of creating that future. In fact, according to a recent study, 69 percent of life insurance owners feel financially secure versus 49 percent of non-owners.

Life insurance is there for any ongoing expenses your loved ones may have after your death. It can replace your lost income, ensuring that your family can continue to pay for bills, the mortgage, groceries, college tuition and more.

3. Providing living benefits

Many don’t know that life insurance can also include living benefits, which means you can use the proceeds while you’re still alive. With permanent life insurance, your policy builds cash value over time, which you can then use in the future for any purpose. This could be incredibly helpful for your business in a time of financial need. Take Mike Jaap, for example, who used the cash value in his policy to keep his small business afloat during the economic crisis in 2008. (Just know that withdrawing cash value from the policy will reduce the death benefit if you don’t pay it back.)

4. Ensuring generational wealth transfer

Entrepreneurs often strive to build wealth not only for themselves but also for future generations. By incorporating life insurance into your business plan, you can ensure that your family has the means to maintain their standard of living, inherit your business or access financial resources to pursue their entrepreneurial ventures. Life insurance can help you leave a legacy.

Benefits of Life Insurance in Business Operations

Life insurance is just as important for your business itself as it is for your family. Life insurance is particularly important for small businesses, as cash flow is often a concern–life insurance proceeds could make or break the business when the need comes.

Here is how life insurance can play a role in safeguarding your employees’ welfare and your business operations:

1. Protecting your employees

Your employees are pivotal to the success of your business–their skills, time and dedication are crucial in helping your company thrive. Life insurance offers a valuable benefit that you can extend to your employees, demonstrating your commitment to their well-being.

Group life insurance typically offers coverage for employees as long as they remain with the company. This benefit gives employees peace of mind and makes your business an attractive option for job seekers.

2. Ensuring business continuity

Life insurance can serve as a critical tool to maintain business continuity in the face of unexpected events like the death of key personnel. Key personnel, including top executives, directors, officers, partners or owners, often possess specialized skills and knowledge crucial to your business. When they pass, it can leave a significant void that affects your business’s financial stability and future prospects.

Key person life insurance addresses this challenge by providing financial support to bridge the gap left by losing a key individual. The proceeds from key personnel life insurance can help your business navigate the financial burden of the loss. These funds can be utilized to hire and train a potential replacement, cover outstanding debts and obligations, or provide liquidity for the business to ensure its continuity.

3. Guaranteeing a smooth transition

If you run a business with partners or co-owners, a buy-sell agreement becomes crucial to your overall business plan. This agreement establishes the terms for buying out the shares of a deceased partner, ensuring a smooth ownership transition.

Life insurance can play a significant role in funding the buy-sell agreement. By taking out life insurance policies on each owner or partner, the business can use the proceeds to purchase the shares from the person who has passed away. This approach minimizes the financial strain on the surviving partners or the business itself, allowing for a seamless transfer of ownership without depleting the company’s cash flow or resorting to debt. By utilizing life insurance in buy-sell agreements, you can help protect your business and generate significant savings in the long run.

Life insurance should be part of your business plan

Integrating life insurance into your business plan is not just a wise choice but a crucial one. Life insurance provides much-needed financial security for your loved ones and plays a vital role in the continuity of your business.

Don’t underestimate the power of life insurance. It’s time to embrace it as an integral part of your entrepreneurial journey. Plan, protect what matters most, and build a resilient future for yourself, your loved ones and your business.

Upgrading Your Life Insurance: Is Switching from Term to Perm Right for You?

by Kirk Cremer | August 3, 2023 | Life Insurance | 0 comments

As life happens and your needs change, you may find yourself questioning whether your current life insurance coverage is the best fit for you. If you currently have a term life insurance policy but are considering switching to permanent life insurance coverage, you may be wondering if it’s even possible to make the change. The good news is that it is possible, but there are some important factors to consider first.

Term Life Insurance vs. Permanent Life Insurance

First, let’s review the key differences between term life and permanent life insurance.

Term life insurance provides coverage for a specific period of time, typically 10, 20 or 30 years. If you pass away during the term of the policy, your beneficiaries will receive a death benefit. Once the term is up, the policy expires, and you no longer have coverage—so your beneficiaries would not receive a death benefit if you died after the term. There is usually no cash value attached to a term life insurance policy.

On the other hand, permanent life insurance provides coverage for your entire life, as long as the premiums are paid. In addition to a death benefit, permanent life insurance policies also have a cash value component that grows over time. This cash value can be used for a variety of purposes, such as borrowing against the policy or using it to pay premiums.

Why Switch to Permanent Life Insurance?

There are several reasons why you might consider switching from term life to permanent life insurance coverage:

You want coverage for your entire life: If you have ongoing financial obligations or dependents that will need support for your entire life, permanent life insurance may be a better fit for your needs.
You want to build cash value: Permanent life insurance policies build cash value over time, which can be a valuable asset for a variety of purposes. You could borrow cash value for things like college tuition or retirement income, for example. When you take a loan from your permanent insurance policy, the borrowing rates tend to be relatively low because you’re using the cash value as collateral.
You want to lock in your premium: With term life insurance, your premium is typically fixed for the term of the policy. When the term is up, however, you’ll need to renew the policy at a new rate. This could be substantially more expensive than when you initially got coverage, depending on how much older you are and if you’ve developed any health conditions. With permanent life insurance, your premium is typically fixed for life, which can provide peace of mind and stability when planning for the future.

How to Switch from Term Life to Permanent Life Insurance

If you’ve decided that switching from term life to permanent life insurance coverage is the right move for you, there are a few steps you’ll need to take:

Check your policy: The first step is to check whether your existing term life insurance policy allows conversion to a permanent life insurance policy. Most term policies are convertible, which means you could convert your policy to permanent without having to do a new medical exam or underwriting. Some policies only allow it within the first few years of the policy, while others allow it at any point during the term. That’s why it’s essential to check the specific terms and conditions of your policy.

Determine your coverage needs: Before making any changes to your life insurance coverage, it’s important to assess your current and future financial needs. Consider factors such as outstanding debts, ongoing expenses and the financial needs of your dependents.

Research and compare policies: There are a variety of permanent life insurance policies available, each with their own benefits and drawbacks. Be sure to research and compare policies from different providers to find the best fit for your needs and budget.

Apply for a new policy: If you’ve determined that you either can’t or don’t want to convert your term policy, you’ll need to apply for a new permanent policy. This process may involve a medical exam and underwriting, depending on the policy and your health history.

Cancel your existing policy: Once your new policy is in place, you can cancel your existing term life insurance policy or let the term expire. Be sure to coordinate the timing of these changes to ensure there is no gap in your coverage.

It’s important to note that the premium for a permanent life insurance policy is typically higher than for a term life insurance policy, since permanent policies provide lifetime coverage and have a cash value component that accumulates over time. Before converting, it’s essential to consider whether the higher premium is affordable and fits within your overall financial plan. We recommend meeting with an insurance professional to make sure you’ve carefully considered the costs and benefits.

Participate in Life Happens’ Facebook Chat for Life Insurance Awareness Month

by Corey Goodburn | July 18, 2023 | Financial Education, Life Insurance | 0 comments

Join Life Happens for a Facebook Chat during Life Insurance Awareness Month this September. We’ll discuss all things life insurance and living benefits!

Date: Thursday, September 14, from 1 to 2 p.m. ET

Where: Join us on Facebook using your personal handle or your company’s handle.

Hashtag: Use and follow #LIAM23Chat during the above time frame.

How to: To share a response from your company account on Life Happens’ posts, first switch your profile to your company’s Facebook page. Then look up Life Happens in the search bar. When you’re on Life Happens’ Facebook page, make sure you’re writing a comment as your company’s page by checking to see that the profile picture and name matches your company and not your personal account. If you need any assistance, please contact Corey Goodburn, our Social Media Specialist, at cgoodburn@lifehappens.org.

Life Happens will moderate the discussion and drive the conversation on Facebook using the questions below. Pass your answers through company compliance beforehand if needed. The concept is very similar to our previous Twitter Chats: We’ll share each question as a post and create a dialogue in the comments with companies’ answers. Remember, you’ll have to use the #LIAM23Chat hashtag in each comment. You are also encouraged to share our posts and engage with other comments.

Q1: What is something you wish more people knew about life insurance? #LIAM23Chat

Q2: What are living benefits and why are they so important? #LIAM23Chat

Q3: What statistic from our 2023 Insurance Barometer Study with LIMRA do you find most surprising? #LIAM23Chat

Q4: What do you think of the following phrase that pertains to permanent life insurance?: “Life insurance can help maximize your retirement fund.” #LIAM23Chat

Q5: According to the 2023 Insurance Barometer Study (Source: Life Happens and LIMRA), people say money is the top reason for not getting life insurance, but more than half overestimate its cost by 3x or more. Why do you think that is? #LIAM23Chat

Q6: If you’re a single parent, life insurance is so important to protect your child’s financial future. What are other reasons why single moms might need life insurance? #LIAM23Chat

Q7: Why would someone need more than one life insurance policy? #LIAM23Chat

And don’t forget, Life Happens is a nonprofit organization with a mission to educate people about life insurance. Want to help us further our mission by becoming a partner company? Contact Ric Pratte at partnerships@lifehappens.org.

What Women Need to Know About Life Insurance

by Maggie Leyes | July 11, 2023 | Life Insurance | 0 comments

If someone depends on you, chances are you need life insurance. Why, then, do fewer women own life insurance than men?* There are some misconceptions that prevent women from getting the coverage they need. For instance, you don’t need to be the primary breadwinner in your household or married with kids to need it. Read on to see if any of these scenarios speak to you:

If you’re married

The majority of today’s families depend on two incomes to make ends meet. If you died suddenly—whether you are the primary breadwinner or not—could your family maintain their standard of living on your spouse’s income alone? Probably not. Life insurance makes sure that your plans for your family don’t die if you do.

If you’re a single parent

As a single mom, you are the primary caregiver, breadwinner and so much more. Yet just two in five single moms have life insurance, and many with coverage say they need more.* And if you are your children’s one-and-only, it’s critical that you consider it. It not only covers your funeral costs but can safeguard your children’s financial future, including the dreams you have for them, like college.

If you’re single

Our lives are so interconnected that it’s likely you have family who depends on you. You may have a special-needs sibling or aging parents that you know will rely on you financially at some point. And many people don’t know that the living benefits of a permanent life insurance policy—the cash value that grows over time—can help “future you” by supplementing your retirement income, and more.

If you’re a stay-at-home mom

Just because you don’t earn a salary doesn’t mean you don’t make a financial contribution to your family. Childcare, cleaning, cooking and household management are all important tasks, the replacement value of which is often severely underestimated. Could your spouse or partner afford to pay someone for these services or take them on and still work full-time? With life insurance, your family has choices.

And don’t forget to make this a conversation if you do have a spouse or partner so that you both have adequate amounts of life insurance. While you may have some as a benefit through your job, remember that your coverage typically goes away if your job does. Having an individual policy that you own is the best way to ensure you have the coverage you need.

Getting started doesn’t have to be hard. You can calculate how much coverage you might need using our Life Insurance Needs Calculator. It’s also helpful to speak with a life insurance professional, who can help you get a policy that fits you and your budget. If you don’t have one to work with, you can use our Agent Locator.

*2023 Insurance Barometer Study, Life Happens and LIMRA

Four Facts About Getting Disability Insurance with a Pre-Existing Condition

by Sharon Feldman | June 22, 2023 | Disability Insurance | 0 comments

We know that disability insurance is meant to provide coverage if you get sick or injured and can’t work. But what if you’re already sick or injured when you apply for disability insurance coverage? Can you still apply? And will it pay out when you need to file a disability claim?

A pre-existing condition refers to any medical condition you were already diagnosed with prior to applying for insurance coverage. Some common pre-existing conditions include diabetes, cancer, depression, asthma, HIV and epilepsy.

Here are four important facts about getting disability insurance with a pre-existing condition.

1) You may still be able to get coverage.

Yes, many long-term disability insurance policies have exclusions for pre-existing conditions. The good news is that you still can, in many cases, qualify for disability insurance even with a pre-existing condition. You should also be able to collect insurance benefits when you file a claim as long as your disability insurance claim is in no way related to your pre-existing condition.

Some insurers may even approve coverage for someone with cancer, for example, if it has been in remission for a few years. Those with other conditions like diabetes, sleep apnea, lupus and ulcerative colitis can typically be approved for a policy as long as their condition is currently in treatment, but may pay a somewhat higher premium.

2) Some chronic or serious conditions may disqualify you.

Keep in mind that conditions of a serious and chronic nature may disqualify you from securing disability benefits. If you have disability insurance and file a claim for an injury or illness related to your pre-existing condition, it will likely be denied

For example, if you have epilepsy when applying for coverage, and a few months later your seizures become more severe and prevent you from working, your disability insurance policy will likely not approve a claim for lost income, since you already had the condition before getting coverage.

3) You may need to provide extra evidence.

If your disability insurance claim gets denied, the insurance company may open an investigation. Medical records from before your coverage began can help show whether your claim is related to a pre-existing condition or not. For example, if you have a pre-existing injury related to your back, and you injure your back in a new or different way, you can prove this through medical records. Whenever an insurance company denies a claim, they are required to provide a clear reason why, so ask for clarification if you are confused about a denial.

One thing that can help with appealing a claim denial is to get a doctor’s note that explains the exact cause of your disability. This can help the insurance company determine whether or not it relates to your pre-existing condition.

Always disclose your pre-existing condition when applying for coverage. If you don’t and your insurance carrier learns about your condition down the line, they will likely deny your claim. Disclosure is a required part of most insurance contracts, so be honest about your situation.

4) Look into employer-sponsored disability insurance.

Enrolling in a group plan provided by your employer can be a good way to get coverage. It’s often cheaper than purchasing an individual policy because it’s included in your overall benefits package, and the coverage is automatic. That means there is no underwriting or medical exam, so you can still qualify with a pre-existing condition.

While there are many pros to employer-sponsored coverage, keep in mind that:

There are fewer coverage options and more limitations than individual policies.
They still don’t cover all types of conditions.
You lose your coverage if you leave or are terminated from your job.

You can learn more about disability insurance coverage by contacting an insurance agent. A good way to find a favorable policy for your situation is to work with an independent disability insurance agent who can work with many carriers to find one that will more likely approve your condition.

5 Advantages of Combining Annuities and Life Insurance for Retirement

by Shawn Plummer | June 12, 2023 | Annuities, Life Insurance, Retirement Planning | 0 comments

Preparing for your retirement needs careful planning to ensure you get the right benefits after years of hard work. Combining annuities and life insurance can be one way to achieve a comprehensive plan that sets you on the right track for a relaxing retirement.

You can use both annuities and life insurance as part of your retirement strategy. This approach delivers several benefits, depending on your specific financial situation.

What Are Annuities and Life Insurance?

First, let’s look at the two options. With an annuity, you pay a regular premium in exchange for a guaranteed stream of income to cover your living expenses during your retirement. This could be for a fixed length of time or for the rest of your life—you can choose from different types of annuities to match your financial capacity.

Meanwhile, life insurance helps your loved ones manage financially after your passing. You pay a premium in exchange for a death benefit. Your beneficiaries will receive cash when you die to cover any expenses they need to, like paying for your funeral, replacing lost income, covering debts and more.

1. Guaranteed Income and Death Benefit

Combining annuities and life insurance can give you a reliable source of income during your retirement years, as well as a death benefit for your beneficiaries after you die. You have the option to use a portion of your life insurance policy’s premiums to purchase an annuity, allowing you to maximize your coverage.

Purchasing what’s known as a period-certain annuity offers a similar benefit. This type of annuity provides guaranteed income within a certain period, such as 10 years. If you pass away during that period, your beneficiaries will continue to receive your income until its expiration. Compare this to a conventional life annuity, which pays out until you die (an uncertain period of time).

It’s important to work with a qualified insurance professional to identify the best ways to combine annuities and life insurance.

2. Tax Advantages

Both annuities and life insurance policies offer tax advantages that contribute to improving your retirement plan.

Annuities offer tax-deferred growth, which eliminates the need to pay taxes on your earnings until you withdraw them, reducing your tax liability while your annuity increases in value. Meanwhile, life insurance proceeds are generally income-tax-free for your beneficiaries.

3. Diversification

Uniting your annuity and life insurance diversifies your retirement portfolio. Annuities let you forecast and conserve your source of income, while life insurance assures a potential lump sum payout to your beneficiaries.

This diversification helps manage risk and protects your retirement savings from market fluctuations. It further balances your retirement planning and asset management.

4. Estate Planning

You can use life insurance as part of your estate planning strategy to transfer your wealth to your heirs in a tax-efficient manner. Combining annuities and life insurance further provides you with a comprehensive estate plan covering both lifetime income generation and a legacy for your loved ones.

Other than the smooth transfer of wealth, you can expect the following benefits:

Improve control over the distribution of assets after death.
Avoid probate, which makes the processing of death benefits time-consuming and expensive.
Minimize estate and other taxes that may be due upon your death.
Use annuity payments to cover ongoing expenses.
Ensure the fair share of the inheritance.

5. Peace of Mind

Overall, both annuities and life insurance promote peace of mind for you and your loved ones. If you want to know for certain that you won’t run out of money in retirement, annuities can help. And with life insurance, you can be assured that your loved ones will be financially protected when you die.

Having both annuities and life insurance gives you more flexibility and control over your financial assets. More importantly, this approach helps address your care costs, bills, debts and other financial expenses.

Retirement should be carefree and relaxing—financial certainty is a key part of making sure you can enjoy this period of your life. Working with a qualified insurance professional is the best method when considering annuities and life insurance. Your insurance professional will explain your options and guide you to a solution that maximizes these advantages. If you don’t have an agent or advisor yet, you can look for one in your area with Life Happens’ Agent Locator.

I Just Graduated. Isn’t It Too Early to Talk About Life Insurance?

by Kirk Cremer | May 23, 2023 | Life Insurance | 0 comments

First of all, congratulations! All your hard work has finally paid off, and you’ve been rewarded with that sweet certificate. So, what’s next?

Whether you’re continuing your education, entering the workforce or settling down with someone special (or all of the above), life insurance should be part of your plan. You may be thinking, “But I’m young! Isn’t life insurance for older people?”

Life insurance may not seem like a priority right now, especially with competing financial concerns, such as saving for your first big purchases or paying off your student loans. But being a young adult means you’re entering a new stage of life. Here are a few reasons to consider purchasing life insurance now, depending on your personal situation.

A New Graduate

Just finished school and looking for a job? We get it—money is probably tight. However, consider a term life insurance policy, which is generally one of the least expensive options. It will likely never be more affordable than it is now—and it’s probably less expensive than you think. If one of those terrible “it could never happen to me” things actually does happen, you won’t leave the financial burden of paying for your final expenses for your parents or loved ones to handle.

Entering the Job Market

If you’ve just started looking for a job, you may also be putting together a budget for the first time. Money has a way of disappearing quickly if you don’t keep track of your spending habits. Consider directing at least a portion of your pay toward long-term financial goals, like saving for retirement and purchasing a life insurance plan.

This is also an opportune time to explore the life insurance offered through your new employer. Typically, it’s equal to one or two times your salary, or it may be a set amount like $50,000. While employer life insurance on its own is generally not enough coverage as you get older and have more financial responsibilities, it’s still a great benefit to have. And did we mention that life insurance from your employer is usually free for you? So be sure to take advantage of it when you receive your new employee paperwork and assign the appropriate beneficiary.

Preparing for the Future

Graduation is often a time when other life milestones start taking shape as well. If you plan to buy a house, get married or have children, you can help protect your loved ones by purchasing a life insurance policy now.

You truly never know when the unexpected will happen. Take Summer Stokes’ story, for example. At 22 years old, Summer was managing her own household, working full-time and attending school with dreams of becoming a doctor. When she found out she was going to be a mom for the first time, she bought life insurance, even though her budget was tight and her mom, Coleen, originally advised against it. That ended up being the most responsible decision she could have made for her son, Nathan, and his future. Watch her story here.

Paying Off Your Debt and Expenses

Life insurance is also important if your parents co-signed for your student loans or other debt, such as a car. If something happens to you, your co-signers could be immediately burdened with the responsibility of taking over these payments. Life insurance can help alleviate or even eliminate these expenses.

Depending on your circumstances, there may be other final expenses like medical bills to pay as well. Life insurance could help cover these costs.

Why Should I Do It Now?

Getting life insurance as a recent graduate may present you with several advantages. During your application process, you’ll undergo something called underwriting. In a nutshell, the insurer looks over your health records and decides how likely it is that you will pass away. Based on this risk, you are either approved or denied. No one is guaranteed to be approved for life insurance, but you typically have a much better chance to qualify when you are younger and in good health.

Insurers also determine how much you will pay, which is called your premium. If you are younger and healthier, you will likely be offered a lower premium than someone who waited until they were older and their health has declined, even just a little.

Choosing Your Policy

So, we’ve convinced you to consider purchasing a life insurance policy? Great! The next step is to choose your policy. We highly recommend meeting with a financial professional who will look at your situation and explain the many types of coverage so you can decide what’s best for you.

5 Myths the AAPI Community Has About Life Insurance

by Devin Pascoe | May 11, 2023 | Life Insurance | 0 comments

Insurance professional and Filipino American Jordan Mangaliman works hard to educate the Asian American and Pacific Islander (AAPI) community about life insurance.

While Asian Americans represent the race and ethnic group with the smallest life insurance need-gap—35% say they need life insurance or more of it—that still represents 5 million people in the AAPI community who need more coverage, according to recent data from the 2023 Insurance Barometer Study by Life Happens and LIMRA.

The founder and CEO of Gold Line Insurance and Financial Services in Fullerton, Calif., Jordan regularly helps members of his local community get life insurance coverage. Here are the biggest misconceptions he encounters from his AAPI clients.

1. Life insurance is unaffordable.

Jordan says this is one of the most frequent myths he hears in the AAPI community. According to the 2023 Insurance Barometer Study, Asian Americans cite perceived expense as the top reason for not owning life insurance (37 percent), followed by other financial priorities (26 percent).

The good news is life insurance probably costs less than you think. In fact, most people overestimate its cost by three times or more. As Jordan shares, “By working with an insurance professional, you can shop different carriers and rates. Affordable coverage with abundant benefits is more budget-friendly than you think!”

2. I have enough life insurance at work.

According to the same study, Asian Americans are more likely (29 percent) than other race and ethnic groups to say, “I have life insurance through my job, and I feel it is enough for me.” While life insurance through your job is a great benefit, it’s usually not enough coverage.

Many people with life insurance through work have a group term policy that provides one or two times their salary. Jordan lets his clients know that depending on how much financial support your family may need, this is often not enough.

Think about all the expenses your family would have to continue to cover after you die—bills, mortgage payments, childcare, debt, retirement. It adds up. How far would your coverage from work really go once you calculate those costs?

“Another important factor to ask,” says Jordan, “is, ‘What happens to your life insurance policy at work if you no longer work there anymore?’” An individual life insurance policy ensures you keep your coverage regardless of where you work.

3. I have to die to use a life insurance policy.

Jordan says many of his clients aren’t aware of how life insurance could benefit them while they’re still alive. The data supports this: Asian Americans are more likely (34 percent) to say that they can’t personally benefit from life insurance compared to other groups.

Jordan is quick to educate them on how life insurance policies have gone through several evolutions, with one of the most important being living benefits. This means you can potentially access your life insurance policy if you get sick or injured while you’re still alive. Furthermore, permanent life insurance can be designed so that the policy’s cash value can fund supplemental retirement income, pay for college, buy a house and more.

4. I have savings, so I don’t need life insurance.

Interestingly, Asian Americans are the least likely of all groups to say that saving money for an emergency fund (29 percent) or paying monthly bills (24 percent) are their top financial concerns. It’s clear the AAPI community values saving. And yet, what happens to your plans for those savings (retirement, passing on generational wealth, etc.) if your family has to use it all to cover expenses when you die?

As Jordan puts it, “The purpose of life insurance is to pay a benefit in the event of an unexpected life event. Just like car insurance, you are paying a premium so that the insurance company will pay a benefit if an unexpected qualifying event occurs, so you don’t have to use your hard-earned savings.”

5. I’m too young for life insurance.

Since life insurance premiums are calculated based on your risk of dying, it’s generally more affordable the younger and healthier you are. That means premiums can go up the longer you wait! Lock in your rate now before any health conditions surprise you later on.

Working with an insurance professional like Jordan is a great way to learn more and get coverage. Check out our helpful information on how to choose a qualified insurance professional. Then use our Agent Locator to find one in your area.

« Older Entries

Next Entries »