We know that there is a substantial gap in coverage for many Americans, with 53 million adults saying they need life insurance or more of it. September is Life Insurance Awareness Month, a perfect time to discover the truth about life insurance and its role as a powerful financial-protection tool.
While half of Millennials report needing life insurance or more of it, over one-third of Gen Z reported to LIMRA that they perceive life insurance to be “too expensive.” Yet 69% are overestimating the actual cost.
It’s OK to start small, and anytime you work with a financial professional, you can re-evaluate your coverage. Things inevitably change over a lifetime, and you can adjust your policy choices to meet your evolving needs.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Purchasing a policy doesn’t have to be complicated
Today’s life insurance search tools allow you to more easily find coverage that fits your budget. Thanks to rapid innovations in digital platforms, the life insurance industry continues to make the purchase processes simpler, and many different types of life insurance products are more accessible than ever. In many cases, medical exams may not be necessary, and you can often acquire coverage in just a few days.
The first thought that often comes to mind about life insurance is the death benefit. While that’s the primary use for life insurance, many policies offer cash value that you can use during your lifetime. You can access funds to help pay for medical care and other personal expenses. This feature is often categorized as “living benefits.” Talking with a financial professional can help you determine what works for you and your lifestyle.
Life insurance leaves a legacy
One in 10 families report that they would struggle financially by the end of the week if a primary income earner were to die. In cases like this, life insurance is about providing financial protection for your loved ones by replacing that critical income.
The good news is that you hold the keys. You decide how much your family will receive and what level of protection you want to provide. For one family, that could mean enough to maintain a standard of living. For others, it may mean paying off a mortgage or outstanding loans. What matters most is that proactive planning for the unexpected allows your family to manage financially in your absence.
Make a move
Moody’s Analytics estimates that, due to inflation, U.S. household costs are $709 more per month than they were just two years ago and an additional $202 more a month than last year. Markets can be volatile and inherently unpredictable, which makes it even more important to plan ahead.
“What if” conversations can be difficult and uncomfortable. Reimagine life insurance planning for what it really is: an affordable, dependable way to replace income for your family, supplement retirement and create financial security.
Life insurance can feel complicated, but many tools are available to help you make the right decisions. Do some research, reach out to a financial professional and take the next steps to ensure your loved ones are financially cared for.
Issuance of the policy may depend upon the answers to the health questions set forth in the application. Outstanding loans and withdrawals will reduce policy cash values, and the death benefit and may have tax consequences. Life insurance is issued by The Prudential Insurance Company of America, Newark, NJ, and its affiliates. 1073235-00001-00
related content
- Four Ways Life Insurance Can Grow and Protect Your Wealth
- Life Insurance: Let’s Separate the Facts From Fiction
- Eight Ways to Save Money on Life Insurance
- Yes, You Can Be the Beneficiary of Your Own Life Insurance Plan
- Retirement Planning with Life Insurance
-
The Most Tax-Friendly States for Investing in 2025 (Hint: There Are Two)State Taxes Living in one of these places could lower your 2025 investment taxes — especially if you invest in real estate.
-
Want To Retire at 55? See If You Can Answer These Five QuestionsWho said you can’t retire at 55? If you say yes to these questions, you may be on your way to an early retirement.
-
Potential Trouble for Retirees: A Wealth Adviser's Guide to the OBBB's Impact on RetirementWhile some provisions might help, others could push you into a higher tax bracket and raise your costs. Be strategic about Roth conversions, charitable donations, estate tax plans and health care expenditures.
-
One Small Step for Your Money, One Giant Leap for RetirementSaving enough for retirement can sound as daunting as walking on the moon. But what would your future look like if you took one small step toward it this year?
-
This Is What You Really Need to Know About Medicare, From a Financial ExpertHealth care costs are a significant retirement expense, and Medicare offers essential but complex coverage that requires careful planning. Here's how to navigate Medicare's various parts, enrollment periods and income-based costs.
-
I'm a Financial Planner: Could Partial Retirement Be the Right Move for You?Many Americans close to retirement are questioning whether they should take the full leap into retirement or continue to work part-time.
-
From Mortgages to Taxes to Estates: How to Prepare for Falling Interest RatesAs speculation grows that the Federal Reserve will soon start lowering interest rates, now is a good time to review your financial plans for housing, estate, taxes, investing and retirement to make the most of potential changes.
-
This Is How Lottery Winners Build Lasting Legacies, From a Financial ProfessionalWinning a massive lottery jackpot, like the recent $1.4 billion Powerball, requires seeking immediate legal and financial counsel, protecting your identity and winnings and planning your legacy.
-
I'm an Investment Strategist: This Is How the Fed's Next Rate Move Could Impact Your WalletInterest rate cuts might be coming, which could affect everything from your credit card debt to your mortgage. It's smart to prepare now — here's how.
-
I'm a Retirement Planner: These Are Three Common Tax Mistakes You Could Be Making With Your InvestmentsDon't pay more tax on your investments than you need to. You can keep more money in your pocket (or for retirement) by avoiding these three common mistakes.
