Page 5 – Life Happens

5 Questions Newlyweds Have About Life Insurance

by Devin Pascoe | July 29, 2022 | Life Insurance | 0 comments

Many exciting elements make up life as a newlywed, especially when you’re just coming off the thrill of a wedding and honeymoon. You may be looking forward to settling into a new routine, while simultaneously aware that there are certain plans you need to make together for the future.

Although it may not be the first thing on your mind as a newlywed, creating a strong financial plan for your future should be an important point on your to-do list. Moreover, your financial strategy needs to include planning for risk—and thinking about what could go wrong, even if it’s uncomfortable. Often, that means buying life insurance.

Five Life Insurance Questions Asked by Newlyweds

Newlyweds, whether young or old, financially established or just getting started, often have similar questions related to their new marital status. So, let’s look at five FAQs newlyweds have about life insurance.

How much life insurance do we need?
What kind of life insurance do we need?
Do we need life insurance if we don’t have kids?
Can we afford life insurance?
What is life insurance used for?

How Much Life Insurance Do We Need?

Understanding how much life insurance you need for your new married life will depend on a few key things.

First, it will depend on all of your financial obligations. If you or your spouse were to die, what debts and responsibilities would you each leave behind for your partner? Making sure those expenses and obligations are covered is a good first step to deciding how much life insurance you need. Your list could include a mortgage, car payments, student loans, credit cards or other personal debts.
Next, you will need to decide how much money your spouse depends on you to bring home each year. Does that income need to be replaced if you die? Both partners need to make this calculation for buying their own policies to protect the other. Your everyday expenses should factor into your calculations, along with monthly, yearly and incidental financial events.
Finally, you may need to plan for the future with your life insurance. You and your spouse should consider any current or future dependent costs (i.e., children) and any retirement savings you could lose out on if your partner dies.

For help in coming up with a more defined number, visit our life insurance needs calculator here.

What Kind of Life Insurance Do Newlyweds Need?

The type of life insurance you need as a newlywed depends on your budget and the extent of what you need your coverage to do. You may simply need insurance to cover funeral costs and necessary living expenses in the event of a partner’s death. However, you may also have a need for more sophisticated financial planning.

You and your partner can choose from many different types of life insurance products from many different insurance companies to meet your unique needs. However, most can be defined as either term or permanent life insurance.

Term is life insurance that you buy for a specific period of time. If you die during that time, your spouse (or another beneficiary) will receive a specified amount of money as a death benefit. Learn all the ins and outs of term insurance here.
Permanent life insurance will not end at a certain time like term. It continues to cover you through your life, and not only provides a death benefit but can also provide what is known as cash value. Although you may pay more for a permanent policy, there are still affordable options available—even for young, just-starting-out newlyweds. You can read more about permanent insurance here.

Do We Need Life Insurance If We Don’t Have Kids?

A common reason couples cite for having life insurance is to continue providing for their kids if their financial contributions were no longer in the picture. So, what if you don’t have children? Do you still need life insurance?

The answer is usually still yes. Let’s look at two instances.

No kids now, but maybe later?

If you don’t have kids now but may want them in the future, buying life insurance before children is still a good idea. To start, life insurance rates are typically more affordable the younger you are. So, getting a policy now could keep your rates lower for longer.
Additionally, the ability to buy life insurance depends on you being healthy enough to get it. Buying a policy now ensures that if you have a future health event that makes you uninsurable, you will have addressed that risk and already be covered.

No kids now… and probably never.

If children are not in your plans, you probably still need life insurance to cover your partner—at least until you and your partner are financially secure enough and have enough savings to cover all of your financial needs if one or both of you should pass. You may also want life insurance for any other family members who depend on you, or perhaps even for philanthropic reasons.

Can We Afford Life Insurance?

The world of life insurance is large, and there is a policy out there for just about anyone. Most couples are surprised to learn that life insurance is more affordable than they might think. According to recent research, 8 in 10 millennials overestimate the cost of life insurance, many by as much as 5x its actual cost.

First, decide how much life insurance you think you need. Then, if you can’t find a policy with a premium level in your budget, try starting a little lower and scaling up coverage over time. The saying is true: Some life insurance is better than none.

What is Life Insurance Used For?

For newlyweds, life insurance is another way to show your partner how much you love and care for them. You’re providing a way for them to carry on their life and take care of themselves and others if you die. The burden of grief is enough without the weight of financial strain.

Additionally, you can also use life insurance as a financial planning tool. Working with a licensed insurance agent, you can design a life insurance policy that provides more than just a death benefit. If you are looking into a permanent policy, your life insurance could provide cash value, a critical illness provision, or even long-term care benefits.

Conclusions

Getting caught up in the whirlwind of being a newlywed is certainly fun but remembering to create a solid financial foundation will be a rewarding addition to your plans. Now is a great time to make sure that you and your spouse get all of your life insurance questions answered by talking to an experienced agent. In addition, we suggest this article if you have more questions on how to purchase life insurance.

We wish our newlyweds the best of luck in your new life together!

Learn More About Life Insurance During Life Happens’ Twitter Chat

by Corey Goodburn | July 21, 2022 | Life Insurance | 0 comments

With 106 million adults living with an uninsured or underinsured need gap, there is a chance you need more life insurance.

Join Life Happens for a Twitter Chat during Life Insurance Awareness Month this September. You’ll learn about all things life insurance from insurance professionals and companies. You are encouraged to ask questions, reply to other tweets and engage in the greater conversation.

We hope this chat educates you on the facts and benefits of life insurance. That way, the next time you think about getting life insurance (or more of it) for your family, it’s a no-brainer. The truth is, life insurance should be an easy decision because it protects your loved ones financially.

Date: Thursday, September 15 from 1 to 2 p.m. E

Where: Join us on Twitter using your personal handle

Hashtag: Use and follow #LIAM22Chats during the above time frame

Life Happens will moderate the discussion and drive the conversation on Twitter using the questions and statistics below. Any statistics referenced below are from our 2022 Insurance Barometer Study with LIMRA. Remember, you’ll have to use the #LIAM22Chats hashtag in each tweet.

Q1: People might think they know what life insurance is, but haven’t actually researched it. What is something you wish more people knew about life insurance? #LIAM22Chats #LIAM22 #GetLifeInsurance

Q2: If you’re a parent, getting life insurance for your kids means you’re protecting their future insurability. Why is this #LifeHint so important? #LIAM22Chats #LIAM22 #GetLifeInsurance

Q3: 51% of Hispanic Americans say they need (or need more) life insurance—which is the highest of any market segment. What may be preventing these Americans from taking action? #LIAM22Chats #LIAM22 #GetLifeInsurance

Q4: We’ve seen the following comment on social media: “Crowdfunding is kind of like life insurance.” What’s your response to this statement? #LIAM22Chats #LIAM22 #GetLifeInsurance

Q5: 1-in-4 Hispanic Americans who have life insurance say they have coverage solely via employer-sponsored benefits. What opportunity does this present to you or your company? #LIAM22Chats #LIAM22 #GetLifeInsurance

Q6: The way consumers take in financial information on social media continues to evolve. How have you re-imagined the way you use social media since more people are turning to it? #LIAM22Chats #LIAM22 #GetLifeInsurance

Help us share the importance of life insurance during Life Insurance Awareness Month by participating in the Twitter Chat and joining us all September long by using the hashtags #GetLifeInsurance and #LIAM22 on social media.

10 Steps for Creating a Smart End-of-Life Plan

by Devin Pascoe | June 28, 2022 | Financial Planning | 0 comments

End-of-life planning sounds like something you would do, well, toward the end of your life. But the reality is that no one knows what tomorrow will bring. If the worst were to happen, would your family know what bills were due and where to pay them? Would your spouse know where to find your life insurance policy or car title?

Planning for what happens after you pass away isn’t for you, it’s for the people you love. You don’t want to burden your family with financial, legal and logistical problems while they’re grieving.

These 10 steps will help you get your affairs in order:

Have a will and update it periodically. A will designates executors, guardians and trustees. Your executor’s first task is to locate your will. To facilitate that, place the original in an envelope with your name and “Will” written on it. Then keep the envelope in a fireproof metal box, file cabinet or home safe.

Have a health care directive (living will). A living will is a medical directive written in advance that sets forth your preference for treatment in the event of your inability to direct care. It can include when to initiate the directive and who has the decision-making responsibility to withdraw or withhold treatment.

Have powers of attorney. The person you select as your financial and/or healthcare power of attorney should be your spouse or a close friend or relative. Whoever you designate will be authorized to manage your affairs, typically financial ones, if you’re not able to handle them yourself.

Have life insurance. The right life insurance coverage can help keep your dreams alive for your family even if you’re not there. Determining how much to buy can be complicated, so it’s important to seek assistance from an insurance professional.

Review beneficiary designations for your various financial accounts, including group and individual benefits like life insurance and 401(k)s. Check annually to ensure those named in your insurance policies and retirement plans are still relevant to your needs and wishes. Many people think that if they have a will, they are covered. However, beneficiaries designated in documents generally fall outside the scope of a will, so it’s critical that you keep your policies and records updated.

Specify where important financial account information is located. It may sound like an obvious thing to do, but few people keep a list of where important records pertaining to their savings, retirement plans, college-funding plans, mortgage and insurance reside. Keep a master list and review it annually to check for changes or additions.

Specify where important non-financial information and valuables are located, such as marriage certificates, birth certificates, titles/deeds for the house/cars, passports, jewelry, safe deposit box key, items in storage, etc.

Specify your final arrangements, such as burial or cremation, where you want to be buried, whether or not you want to be an organ donor, etc.

Have a list of professionals who assist you with your family’s legal and financial affairs (insurance professional, attorney, accountant, etc.).

Explain to heirs how your trust works. Trusts are often a useful legal and estate-planning device for protecting assets from estate taxes and providing a vehicle that ensures survivors get proper administrative and investment advice and counsel. An attorney is the best source of information about trusts and whether one would be appropriate for you.

Planning for the end of life can feel uncomfortable, but preparing as much as possible and discussing these items with your family can make all the difference. It can help ease your concerns about the future, ensure your wishes are met, and protect the people you love.

For Roselyn Sánchez, Life Insurance Was an Easy Decision

by Devin Pascoe | June 21, 2022 | Life Insurance | 0 comments

You may know Roselyn Sánchez as an actress, producer, proud Puerto Rican, wife and mother of two. But she’s also a life insurance advocate, and this September, she’ll join us as the spokesperson for Life Insurance Awareness Month (LIAM), coordinated by Life Happens. She’s sharing the important message that getting life insurance is an easy decision to make for the ones you love.

In a sea of decisions, there’s one that’s easy: getting life insurance.

Everything changes when you become a parent. You don’t live for yourself anymore; you live for your kids. There are so many choices to make, and sometimes it can feel like they’re all challenging. But when family is everything, like it is for Roselyn, getting life insurance is an easy decision.

Roselyn got life insurance eight years ago when her daughter, Sebella, was 2. That coverage protects her husband and kids financially—they could use the life insurance to cover any current or future expenses, like the mortgage or school tuition, if her earnings were no longer in the picture. As Roselyn puts it, “At least if anything happens to me, I know there’s something in place that can give my children a sense of security.”

Roselyn acknowledges that it can feel like a big commitment—“Oh my god, I’m getting life insurance!” But even some coverage is better than none at all. It’s about being responsible and disciplined for the ones you love, putting that money aside because it will pay off in the future.

**People think about life insurance, but they don’t act on it.**

According to the 2022 Insurance Barometer Study by Life Happens and LIMRA, the Hispanic community expresses the highest need for life insurance: 51% say they need life insurance, or more of it. But myths and misconceptions can get in the way of taking action.

For Roselyn, it all comes back to education—for all Americans, but especially for the Hispanic community. She wants to encourage others to get the coverage they need and let people know that insurance professionals can help them get started.

It’s about changing the narrative of life insurance from making a “big commitment” to making an easy decision. When there are so many choices to make each day for the ones we love, why not make one that’s simple and affordable?

Stay tuned on social media as Roselyn shares more of her powerful life insurance message in the lead-up to LIAM this September. In the meantime, check out our Life Insurance 101 video for unbiased info on the basics and our Life Insurance Needs Calculator to estimate the coverage you need to protect your family.

If you are a life insurance professional, agent or advisor, check out our marketing content to get your LIAM campaign ready to go. Visit www.lifehappenspro.org/LIAM.

Insurance Considerations for the AAPI Community

by Carly Cummings | May 12, 2022 | Financial Education, Life Insurance | 0 comments

The United States of America has a dynamic, diverse population. In fact, our diversity is part of what makes us a strong, vibrant nation. Included in our country’s unique culture are the Asian American and Pacific Islander (AAPI) communities. Here is a brief AAPI community introduction:

According to the White House, the AAPI designation represents over 30 different countries and over 100 different languages.
Approximately 5.4% of the population of the USA identifies as part of the AAPI community, and by 2050, that percentage will grow to about 9.7%.
In addition to representing somewhere between 10,000 to 20,000 islands in the Pacific Ocean, the AAPI community includes large countries, including (but not limited to) China, India, Japan, the Philippines, North and South Korea and Vietnam.

With hundreds of cultures and ethnicities included in this one designation, you can safely assume that while there may be intercultural similarities, there are also many differences. These differences complicate introducing AAPI concerns, goals and issues as singular or comprehensive—and insurance concerns and considerations are no different.

Why Asian American and Pacific Islander Americans Buy Insurance

Just like all our unique citizens, our Asian American and Pacific Islander neighbors are striving to build their own American dream, and then to protect it. That is where insurance comes into play. Let’s look at some shared, and some unique insurance considerations for the AAPI community.

Retirement and Financial Strategy

According to the 2022 Insurance Barometer Study, 45% of Asian Americans say that they need life insurance. Among their reasons for having insurance was a need to replace lost wages in the event that a family earner passes.

Relatedly, 39% of Asian American respondents reported job security and maintaining a steady income as one of their top five financial concerns. Interestingly, no other study segment included this concern in their top five. However, according to the study, “The top financial concern of all race and ethnic segments is to have enough money to retire comfortably.”

Jordan Mangaliman, founder and CEO of Gold Line Insurance and Financial Services, says his Southern California, AAPI clientele are very interested in retirement planning and passing down generational wealth. Jordan educates his clientele on how they can create generational wealth with not just savings and real estate, but also with life insurance.

The Importance of Representation and Education in the AAPI Community

When using life insurance products for creating retirement and generational wealth, Jordan says both education and representation are important for the AAPI community. Whole life, universal life and other permanent products are more complicated than term life insurance. For this reason, it is even more important to have someone who can explain life insurance options in your own language and by people who represent and understand your heritage and community.

Jordan’s parents migrated from the Philippines in the 1980s. He is able to educate his Filipino community in their own language, and he is able to bring concerns and considerations of his and other AAPI communities to the insurance carriers that he works with. He says the AAPI community is still underserved, but insurance carriers are now offering more literature in more languages, and this is very helpful.

Handling Uncertainties with Insurance

Insurance Agent Jin Namkung, says his AAPI customers in New York City often buy life insurance as a way to handle the uncertainty of life. Jin mentions that recent world events (such as the Covid-19 pandemic) have prompted his AAPI customers to buy life and disability insurance or supplement their already-held policies as a way of addressing life’s “uncontrollable circumstances and fears.”

In addition, Jin says that these risks have helped individuals to start thinking about and purchasing life insurance earlier than they otherwise would have. Part of Jin’s job, and the job of all other life insurance agents, is to educate the community on life insurance products, including the benefits of purchasing a policy when you are younger and/or healthier.

Adding to how the pandemic has changed outlooks, Jordan Mangaliman says his Southern California, AAPI clientele is also more aware of how fragile life is. A big part of his job is educating his community about the importance of life insurance for taking care of your family in the event of illness and death. Jordan tells his AAPI clients, and all his clients, “You cannot put life insurance off, and your coverage at work is not adequate to meet all your needs. You can’t buy it when you need it the most… your life insurance is love insurance. It’s how you show your family you love them.”

Small Business Considerations

According to the USA Small Business Association (SBA), as of 2021, almost 10% of all businesses in the United States are Asian American owned. That is over 555,200 AAPI-owned businesses, or one out of every ten US businesses.

This statistic tracks for Jin and his clientele. As an insurance rep in New York City, Jin works with many different entrepreneurs and small business owners in the AAPI community and especially in the Korean community. Small business owners have a unique set of insurance needs that include risk and financial strategies for themselves and their employees.

Immigration Considerations

According to a White House Study, nearly two-thirds of AAPI citizens are foreign-born, making immigration concerns very important. In fact, the AAPI group is one of the fastest growing racial groups in the U.S.

Jin mentions his immigrant clientele came to the United States to live a better life, and they are busy doing so. They might not have time to focus on themselves and prepare for their future. Instead, they’re busy focusing on their families and making the lives of their children better. As a result, it is even more important for them to have access to insurance professionals that speak their languages and know their community and can educate them on financial strategies.

Celebrating and Supporting our AAPI Communities

As a country, we celebrate our diversity and want to make sure all of our citizens are supported and protected. That includes making sure every citizen has the right insurance and financial products. AAPI Heritage Month is a great opportunity to make sure that all the unique concerns and situations of our AAPI neighbors, family and friends are given the attention they deserve. Additionally, if you identify with the AAPI community, then this is also a great time to make sure your story is heard and your financial questions are answered.

Finding Help

If you need assistance in assessing your financial security, then please reach out to a licensed insurance professional today.

First, check out our helpful information on how to choose a qualified insurance professional. Then, use our Agent Locator to find one in your area.

Our Industry Professionals

Jin Namkung is a Registered Representative for NYLIFE Securities LLC (Member FINRA/SIPC), a Licensed Insurance Agency Registered Branch Office: 120 Broadway 29th Floor, New York, NY 10271. Phone number: 212.261.0200.

Jordan Mangaliman is the founder and CEO of Gold Line Insurance and Financial Services at 201 N Harbor Blvd Suite 100, Fullerton, CA 92832. Phone number: 213.446.3903.

Asian American and Pacific Islander Heritage Month

According to the US Census Bureau, every year, May is Asian American and Pacific Islander Heritage Month as established by Congress in 1992. Previously, in 1978, Congress had established the first ten days of May as Asian/Pacific American Heritage week. Congress had originally chosen these days to coincide with the first Japanese immigrants on May 7, 1843, and to celebrate participation of Chinese workers in the completion of the transcontinental railroad.

Why Small Business Owners Need Life and Disability Insurance

by Carly Cummings | May 3, 2022 | Disability Insurance, Life Insurance | 0 comments

When you decided to go into business for yourself, your first thoughts were most likely excited ideas of what could go right: more freedom, happy customers, increased earning potential. However, your later thoughts may have turned to what could go wrong as well. That’s where insurance steps in to help.

As a small business owner, entrepreneur, influencer or freelancer, you are your business, and your business depends entirely on you. Fortunately, insurance is there for you when things take an unexpected turn. You’ve probably thought about general liability insurance or other business insurance, but what about life and disability insurance?

Specifically, life insurance provides peace of mind for your business, and all those who depend on you—family, employees and customers—in the event of your death.
Similarly, disability insurance provides income for you in the event that you are unable to work due to illness or injury.

Why Entrepreneurs Need Life Insurance

Small business owners are used to doing it all and managing a very busy schedule. However, every once in a while, it is necessary to step out of your “doing” role and into your strategic planning role. While it’s never at the top of anyone’s to-do list, that strategic thinking should include preparing for worst case scenarios.

Entrepreneurs and freelancers are the force behind their companies. They fuel growth, take care of customers and inspire employees or partners. So, what happens to their companies, and everyone they support, if a key (or only) person dies?

One sound investment that can help address a key person’s death is life insurance. Life insurance can make sure the company has the resources to continue to take care of business, even if you are gone.

In this case, there are a few ways you can use life insurance to support your small business. Here are a few key policies to consider.

Key Person Insurance

Key Person Insurance is a life insurance policy that pays out when a key owner/employee dies. The business itself purchases the policy and all the proceeds from the death benefit are also paid directly to the business.

The main benefit of Key Person Insurance is that the cash the policy provides can be a bridge to the next necessary step in the business’ life—whether that is finding a key person replacement, selling the business or moving on to other projects.

Buy/Sell Agreement

In the case that your business has more than one owner, then a Buy/Sell Agreement is another option to mitigate the risk of death of a key partner. Entrepreneurs can use life insurance to fund a Buy/Sell agreement. The cash benefit then allows the other owners to buy out the deceased partner’s interest from their remaining family members. If you are a business partner with a family that cannot, or does not want to, run your part of the business in the event of your death, then Buy/Sell funding is a good option.

Individual Life Insurance

Additionally, even if you do not have partners, you should consider a basic life insurance policy to cover your debts and responsibilities. If you die, your family would have financial relief from a cash benefit that could help close down or sell off your business if they don’t want to continue your work.

Disability Insurance Considerations for Entrepreneurs

Another catastrophic consideration for entrepreneurs is, what if you don’t die, but instead, are disabled? You rely on your hard work inside your business to pay your bills. Accordingly, small business owners like you deserve the protection of disability insurance. In the event of injury or illness, it can provide at least a portion of your expected income assuming you cannot work anymore.

Disability Insurance for Employees vs. Entrepreneurs

According to the Social Security Administration, one in four people will become disabled in their working life. With these odds, disability insurance becomes a necessary protection for all workers—whether you are an employee or entrepreneur.

Disability for Employees

Often, corporations provide their employees with long-term disability insurance, up to a certain percentage (usually around 66% of your usual paycheck). Then, their employees can buy more disability insurance to cover even more. Additionally, corporations also can provide or subsidize short-term disability policies (that cover around three months) for their employees.

Disability for Entrepreneurs

On the other hand, small business owners, especially solopreneurs, artisans and freelancers, have to procure and pay for all of their own disability insurance. With no corporate subsidies, many of these entrepreneurs think disability insurance would be too expensive. However, there are different price points available for different disability policies, and a good insurance agent will be able to help you find one that fits your needs and price considerations.

If you are a small business owner who does not have disability insurance, or thinks you may not have enough disability insurance, then your first step is to discover how much (or how much more) you need. You can start with this Disability Insurance Needs Calculator to get an estimate. Then, your next step is to talk to a licensed insurance agent to help you understand the policies available to you.

Conclusions and Action Steps

According to the Small Business Administration (SBA), over 99% of America’s firms are small businesses. Clearly, our country’s entrepreneurs and small business owners are vital to our economy. That is why we need to do everything we can to protect and support them, and life and disability insurance help us do just that.

If you are a freelancer, influencer or business owner, you owe it to yourself to protect everything you are working so hard to create. A good first step is to talk to a licensed insurance agent to calculate your coverage needs, and then to look at what policies are a fit for your unique situation.

Seeking Financial Security? Get Life Insurance

by Faisa Stafford, LUTCF | April 28, 2022 | Life Insurance | 0 comments

The 2022 Insurance Barometer Study, conducted annually by Life Happens and LIMRA, reveals that financial security is a concern for all generations, but one that can be addressed with a stronger understanding of life insurance and its value.

Life insurance provides a pathway to feeling financially secure, yet the life insurance need gap is larger than ever. This is largely due to not feeling knowledgeable about life insurance – whether cost-focused or uncertainty about who qualifies. It’s also exacerbated by our tendency to avoid tough conversations about death that lead to obtaining life insurance and establishing end-of-life planning proactively. When taken together, this uncertainty and avoidance allows the lack of coverage – and financial insecurity as a result – to persist.

Financial insecurity is a multi-generational problem that life insurance can solve for

Our research shows that financial insecurity persists across most demographic groups, yet one behavioral factor significantly reduces financial insecurity among our respondents: life insurance ownership.

Life insurance is a means of taking personal responsibility to establish financial security for your family, so you can have peace of mind that they’ll always be supported. Findings demonstrate life insurance provides a clear pathway to financial security, with 68% of respondents with life insurance policies in place reporting they feel financial stability, compared to just 47% for those who don’t have life insurance.

Despite this, there are still 106 million adults who are in need of life insurance or more life insurance coverage, which is driving the need gap – in other words, the difference between how much coverage people have vs. what they say they need – to the largest it’s ever been.

A lack of knowledge about life insurance cost persists

Almost half of respondents in this year’s Insurance Barometer Study say they are somewhat or not at all knowledgeable about life insurance.

The top reasons people give for not having any or enough life insurance are consistent across the board: expense, other financial priorities, and uncertainty about the type and amount of coverage to get. In reality, 80% of people overestimate the cost of a life insurance policy, with half believing it’s three times more expensive than it actually is.

Uncertainty is leading us to avoid important conversations

Understandably, most of us don’t want to talk about death. But that avoidance is resulting in a general unwillingness to have important conversations about end-of-life planning with our families. Because many Americans are putting off these tough conversations with loved ones, they haven’t prepared for the possible loss of a primary wage earner.

According to our research, 40% of respondents say talking about death brings discomfort.
At the same time, 1 in 10 people say if their household’s primary earner died, they would feel financial hardship within one week.
44% say it would take less than six months to feel financial strain.
In all, only 1 in 5 people say they have a safety net of five years or more.

These numbers reveal a stark reality. Many of us, while figuring out how to navigate an incredibly difficult and emotional time in our lives, would soon be burdened by financial pressures.

The immediate aftermath of losing a loved one should be a time to grieve, not a time for worrying about your financial situation. That’s why it’s imperative to take action in the interest of your family’s future.

How to take action

Life insurance is the foundation of any strong financial plan, and results show it provides people with a sense of security and peace of mind that many of us are looking for, especially after the last two years. The lasting impacts of COVID remain at the forefront for many and serve as a clear reminder of the importance of preparing for what you can control.

In this year’s study, more than half (53%) of all respondents say they are now more health conscious. However, the pandemic does not have the same level of influence on end-of-life planning – just 24% of respondents say it compelled them to discuss end-of-life scenarios with their families. Our data also shows twice as many people made changes to benefit their own personal health than made changes to benefit the ones they might leave behind.

End-of-life planning is a critical component of establishing a comprehensive path toward long-term health and wellness for your family. Many of us are more comfortable discussing life scenarios that focus on health and longevity, and these can help us begin conversations with our loved ones more effectively.

Moving past discomfort is key

These conversations are difficult but essential. Data shows 31% of people say they are more likely to buy life insurance in 2022. Will you join them?

The time is now to take control and do what it takes to set your family up for the future – and it’s easier and more cost-effective than you might think. One phone call to a professional or visit to our Life Insurance Needs Calculator can bring a world of difference to your family’s long-term financial health.

More findings from the 2022 Insurance Barometer Study can be viewed here.

Study Methodology

In January 2022, LIMRA and Life Happens engaged an online panel to survey adult consumers who are financial decision-makers in their households. The survey generated 8,517 responses. The results were weighted to reflect the adult U.S. population.

When It Comes to Financial Literacy, Start Them Young

by Faisa Stafford, LUTCF | April 12, 2022 | Financial Education | 0 comments

April is Financial Literacy Month, a time to raise awareness about financial education, especially in schools for children and teens. It’s an essential message for young people, and as a mom to two teenage girls, I can certainly attest to its importance.

Given my line of work, I suppose it should come as no surprise that instilling good financial habits had an early start in my household. No matter what happens, my girls will be confident with money. They’re smart, and they should be smart with finances too.

Here are a few key ways I’ve approached financial literacy with my kids.

Have Open Conversations About Money

I grew up knowing nothing about my parents’ finances, which has certainly inspired my financial behaviors as an adult.

I make sure to stay very open about finances with my daughters. They know how much I make, how much is in savings, how much is in our retirement plan. That might seem unusual to some families, but it’s so important to me to raise independent young women. I’m the primary breadwinner in my household, and I want them to see firsthand how to be financially secure and stable on their own.

Money is part of every day. So, keep it part of the daily discussion. The more taboo it feels, the more intimidating it becomes—and suddenly your children have lost out on years of approachable financial conversations that could have been preparing them for adulthood.

It’s Okay to Delay Gratification

I’m a big saver, and that’s always been part of the deal in our house. My daughters have known from an early age that money is a finite resource.

Admittedly, this wasn’t always a hit. Try being a kindergartner with friends who receive tons of presents at Christmas, while your mom has put some money toward tangible gifts… and some toward your savings account. It doesn’t have quite the same ring to it at age five! Fortunately, that schoolyard comparison dwindled over time, and they see the value of saving money for bigger items like experiences or college as they’ve gotten older.

In fact, my 14-year-old took her saving capabilities so far that I had to rethink my strategy. I set up 529 plans for both girls when they were little to save for college. To inspire their participation and help them see the benefits of saving, I would multiply any contribution of theirs by ten and add it to their account. So, a $1 deposit from my daughter would result in $10 from me. This worked until about age ten, and then I had to start matching their contributions instead—I would say that’s a good problem to have!

Life Insurance as a Fact of Life

My daughters are aware of how much life insurance my husband and I have, where the policies are, and who will take care of them if something happens to us. And, since the beginning of the pandemic, both of my kids have been covered with their own permanent life insurance policies.

Understandably, this brought up some questions from them: “Is it because you think I’m going to die?” I assured them that it’s not about the death benefit but so that they’re insurable for the rest of their lives. Just as with other financial topics, it’s about protecting them in every way I can.

The good news is it’s getting easier for people to talk about life insurance. According to Life Happens’ study “Life’s New Appreciations,” there was a 9% decrease for life insurance to be avoided at the dinner table in 2021 compared to 2020. And yet, it seems like life insurance is still an often-overlooked part of financial literacy for kids.

I get it—talking about death with young people can be uncomfortable and heavy. But I like to view life insurance as a way to make that necessary conversation a little more positive. Life insurance is a solution to make sure your loved ones are protected, and there is comfort in that for both the parent and the child.

Every parent owes it to their children to teach them. And that includes educating them about money. These financial details are part of the things within your power as a parent to set them up for success.

Some of my favorite resources for financial literacy for kids are:

Mint for budgeting and saving together
Greenlight or GoHenry for kids’ debit cards and investing
Income tax calculator to understand how their paycheck will be affected by taxes
Life Happens for life insurance 101

Are These Three Misconceptions Stopping You From Getting Life Insurance?

by Alex Helm | March 29, 2022 | Life Insurance | 0 comments

Did you know that life insurance may be the single greatest gift you can buy for your family?

I emphasize buy because, of course, nothing can replace the gifts of time and love you already give them.

Let’s look at some of the misconceptions that may be stopping you from getting life insurance—or more of it, and why you’ll want to rethink them.

Misconception #1: My employer provides life insurance for me.

While this is technically true for many people, the misconception is that your employer provides you with enough life insurance coverage.

After talking with several of my friends and family, reviewing my own benefits package, and doing a little research, I’ve found that many employers that provide life insurance as a benefit typically provide one to two times your salary in life insurance coverage. Others may simply offer a flat amount, usually $20,000.

According to Indeed, the average salary in the U.S. sits around $50,000 per year. That means your family would only receive $50,000 to $100,000 if you passed away, and even less if the employer only provides a flat amount. Would that be enough for your loved ones? And what would happen when, in 6 months to a year, the money was gone?

Whether you work in retail or technology, you’re a teacher or a salesman; whether you’re an entry-level employee or at the very top of your company, one thing remains the same: You may be significantly under-protected. Funeral costs alone range from $7,000 to $10,000 and unplanned end-of-life expenses can double that number. Suddenly, that $50,000 is rapidly depleted.

Think about this: Most employers provide a week or less of time off for bereavement. Do you want your spouse to be forced back to work the week after you pass away? What if your spouse is a stay-at-home parent—how long would it take them to find a job? Perhaps you’re the stay-at-home parent—can your spouse afford to pay someone to watch your children? Many financial professionals recommend a life insurance benefit of 10 to 15 times your salary.

To get a more accurate idea of how much life insurance you may need, check out this calculator.

Misconception #2: And that employer-provided life insurance lasts forever.

I was discussing this misconception with a friend the other day. He told me that he didn’t have to worry because he was a teacher, so he was covered for life. I let him know that, in most cases, employer-provided life insurance isn’t portable. That means if you leave your job for any reason, the coverage ends. That includes retiring, switching jobs or getting laid off. In addition, a company could decide at any point to end that particular employee-benefit, leaving you with no coverage.

Are you planning on staying at your job for the rest of your life? According to the U.S. Bureau of Labor Statistics, the average American will have between 12 and 13 jobs throughout their career. There’s a good chance today’s coverage could be gone tomorrow.

And while your employer may offer supplemental coverage for a cost, it could be more expensive than purchasing a new policy, depending on your health. Similarly, some employers allow you to purchase supplemental coverage for your spouse, but if they do, it’s rarely paid for by your employer, and purchasing it on your own may be more affordable.

Misconception #3: Life insurance coverage is too expensive.

According to the 2021 Insurance Barometer Study, more than half of Americans overestimate the cost of life insurance by as much as threefold. This is especially true for younger generations—Millennials believe it costs six times as much as it actually does.

The cost of life insurance depends on four main factors: your age, your health, the type of policy and how much coverage you buy. In general, you’ll pay less the younger and healthier you are.

Many people are surprised to learn that a healthy 30-year-old can typically get a $250,000 20-year level term policy for about $13 a month. If you were to pass away, your loved ones would receive $250,000 from a policy like this.

The Truth

Life insurance protects your family if tragedy strikes. It gives them time to grieve without fear of paying bills or going back to work right away, without fear of who will watch your children or how their lifestyle will change. It’s not just about providing for your family’s next meal, but rather providing for their future needs like college tuition or continuing a business. Your family needs you, and the good news is you can provide for them even when you’re not around.

Start a conversation about purchasing life insurance with your spouse and your financial advisor. The process can range from a few minutes to a few days to a few months, depending on your health and available products, but it is well worth the cost and time.

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Give Like a Millionaire! Life Insurance as a Tool for Charitable Giving

by Spencer Cassidy | March 9, 2022 | Life Insurance | 0 comments

I’m going to let you in on a secret: You don’t have to be a millionaire to give back like one. Life insurance is an affordable way to leave a large, lasting legacy to a charity, school or religious organization. If you currently donate sporadically or even commit annually to charitable organizations, adding life insurance as a planned gift can exponentially increase your impact.

Here’s why: Planned giving is not limited by your current wealth. A small increase in your monthly budget that goes toward a life insurance premium payment can result in a substantially larger gift at your passing than recurring donations that are based on your regular income.

For example, for about $75 a month, a 50-year-old can use a permanent life insurance policy to leave a $50,000 tax-free gift upon their death. It would take roughly 125 years to give that same amount in $400 annual donations to your charity. And for a 40-year-old, that monthly policy payment is just $60 (cost is subject to the health and lifestyle of the donor).

So, how does it work? You purchase a permanent life insurance policy and name the charity of your choice as the beneficiary. The beneficiary is the person or organization you designate to receive the proceeds when you die.

Permanent life insurance policies cover you for life as long as you pay your premium, which makes them ideal for planned gifts. And it can often fit into your budget more easily than you might think—the younger you are, the more affordable the policy can be. So, the best time to choose life insurance as a giving vehicle is now!

Three Key Questions about Life Insurance and Charitable Giving

Q. If I buy a life insurance policy, can I split the proceeds between a charity and my family?

A. Yes! You can name more than one beneficiary, as well as the percentage of the payout you want to go to each one—for instance, you could designate 50% to a spouse and 50% to a charity.

Q. How is the death benefit from my life insurance policy paid to my charity?

A. Nonprofits collect the policy proceeds (a death benefit) when you pass away. The life insurance company will look at the beneficiaries on your policy and pay the organization directly, typically in one lump sum.

Q. Will the money from my life insurance policy be taxed when my charity receives it?

A. In most cases, the people or organizations that receive the proceeds from a life insurance policy do not have to pay taxes on it.

Life insurance policy proceeds are among the largest gifts a nonprofit will receive, often 20 to 100 times the size of annual gifts. Planned giving contributions are vital to a nonprofit’s longevity and ability to carry out its mission, and they help organizations weather annual fluctuations in charitable donations. If you’re passionate about making a difference and want to increase your effects exponentially, life insurance can be an excellent way to make that happen.

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