February, the month of love, brings with it a unique opportunity to express your deepest affections in the most meaningful way possible. February is known in the insurance industry as "Insure Your Love Month." Every year, insurance companies are keen on developing a campaign for customers that focuses on providing life insurance.
It is also sponsored in part by Life Happens who created and coordinates the Insure Your Love campaign each February because the basic motivation behind the purchase of life insurance is love. People want to protect their loved ones, and one of the best ways to do that financially is with life insurance.
The way American couples look at finances in their relationships is changing. Key findings include:
· 59% of people would feel more secure in their relationship if they discussed getting life insurance with their partner
· Half of respondents would talk about wills and life insurance before marriage
· Men are more likely than women to say that purchasing a life insurance policy is a financial way to demonstrate your love (40% vs 33%).
According to Catholic United Financial, it’s said that love isn’t an emotion but is instead “affection put into action in thought, word and deed.” In his phenomenally popular book “The Five Love Languages,” counselor and pastor Gary Chapman introduced the idea that there are five love languages people use to show love and keep it kindled in their relationships.
What’s your insurance love language? And how could you use your love language to express your desire to protect your spouse and family? The five love languages that Chapman identified are Acts of Service, Quality Time, Words of Affirmation, Physical Touch and Gifts.
You might use one or more of the love languages on a regular basis in your relationships, with a preference towards serving your family, or giving out extra-tight hugs to loved ones. On St. Valentine’s Day, there’s an emphasis (or maybe over-emphasis) on gift giving and quality time as expressions of love.
While everyone's love languages might differ, your need to protect the ones you love is universally understood. The purchase of life insurance has an aspect of every type of love language.
• Act of Service: The act of purchasing a policy is a service that will provide comfort and financial fortitude after the passing of a loved one.
• Quality Time: Meeting with an insurance agent can produce some deep conversations around a very specific need for protection and an achievable solution through life insurance.
• Words of Affection: Send the message that you love someone by telling them their future is financially secure if you can’t be there.
• Physical Touch: Sign off on that policy and celebrate with a hug or holding hands as you walk into a more confident future.
• Gifts: The gift of a life insurance policy will last much longer than long-stemmed roses, and has many fewer calories than a box of chocolates! All kidding aside, life insurance has an impact that can last for decades and can contribute to financial health in an impactful way.
However, It turns out that many simply don’t understand how life insurance works — what it costs, what it’s good for, whether substitutes are sufficient, or when the best time to buy life insurance is. There were four key misconceptions discovered in the Life Insurance Barometer survey by Life Happens:
Life insurance is expensive:
Many wildly overestimate the cost of life insurance: 43% of Millennials estimate that life insurance for a healthy 30-year-old would cost $1,000 per year. It actually costs about $170 per year. That means many Millennials believe the cost of life insurance is six times higher than it really is. While it’s understandable that many would prioritize other financial needs because of this misconception, this puts families at risk of great financial hardship if a wage earner were to die unexpectedly.
Workplace life insurance is sufficient:
Most employers’ life insurance comes to a flat sum of $20,000 or one year’s salary, which is simply not sufficient for many families. This goes especially for households with dual incomes — and 54% of U.S. households utilize this strategy to stay afloat. This misconception is fairly common: A full 26% of American workers believe their workplace life insurance is enough. This means that 44% of families would face financial hardship within six months and 25% in less than one month.
Buying life insurance is difficult:
According to the survey, 54% of uninsured Americans don’t buy life insurance because they don’t know how to figure out the particulars; for example, how much they should buy, or what sort of coverage they need. Additionally, less than one in three respondents claimed they were “very” or “extremely” knowledgeable about life insurance. This uncertainty leads to many putting off taking action on their insurance plans. While working with an agent is an option, a full six in 10 Americans don’t utilize a financial professional when planning out insurance.
You only need life insurance when you’re older:
The younger and healthier you are, the less expensive your life insurance tends to be. Putting it off can lead to vastly increased rates. Many insured Americans — about 4 in 10 — wish they had purchased life insurance sooner.
With over 101 million Americans lacking sufficient life insurance coverage, make sure that you and your loved ones are fully protected and have peace of mind. Life insurance isn’t just a policy; it’s your ultimate expression of unselfish love to your family.
Here are five reasons on why you should purchase life insurance:
Financial Protection for Dependents: Life insurance provides a financial safety net for your loved ones in the event of your death. The death benefit can help replace lost income, pay off debts, and cover living expenses.
Debt Repayment: If you have outstanding debts such as a mortgage, car loans, or personal loans, life insurance can help ensure that your family won’t be burdened with those financial obligations if you pass away.
Estate Planning: Life insurance can be a valuable tool in estate planning. It can help cover estate taxes, ensuring that your heirs receive the assets you intend for them without a significant financial burden.
Business Continuity: For business owners, life insurance can be crucial for business continuity. It can provide funds to buy out a deceased partner’s share, settle business debts, or facilitate a smooth transition in case of the owner’s death.
Peace of Mind: Knowing that your loved ones are financially protected in the event of your death can bring peace of mind. Life insurance can provide comfort and reassurance that your family will have the financial support they need during a difficult time.
With the value of life insurance, as like an annuity, this product can become a part of your retirement planning strategy. Today’s life insurance products have more flexibility and living benefits than older life insurance products including long-term care and accelerated benefit riders. Life insurance provides consumers with an affordable option if they do not have the income to place into an annuity. Insurance carriers also have adjusted their products and processes including some life insurance products that do not require a medical exam, have accelerated underwriting, and can be customized to your lifestyle and retirement strategy.
Essentially, life insurance is a contract between an individual and an insurance company, where the insurer guarantees a sum of money to beneficiaries upon the insured’s death. This financial safety net ensures that your loved ones can maintain their quality of life, cover outstanding debts, and meet financial obligations in the event of your passing.
There are various types of life insurance policies, including term life and whole life insurance. Term life insurance provides coverage for a specified term, while whole life insurance offers lifelong protection and often includes a cash value component. The choice between these two options depends on your individual needs, financial goals, and well-being of your loved ones.
As a licensed agent, it would be my pleasure to have a conversation with you to provide answers to your questions about how to insure your love. For more information about life insurance, visit this website: https://www.careingdentalgroup.com/life-insurance
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