Given that September is Life Insurance Awareness month, it is a perfect time to evaluate whether you and your family are adequately covered. Every year at this time more than 100 of the nation’s leading industry groups and insurance companies join in this educational initiative to help ensure that people include life insurance in their overall financial plans.

Although we don’t like to talk about it, the reality is that life insurance can protect your loved ones if the unthinkable were to happen. But even if you have a policy, an inadequate amount could still leave your loved ones short.

Too Many People Lack Life Insurance Coverage

It is estimated that almost 70 million adults in the U.S. do not have any life insurance coverage. This includes roughly 6 million households – approximately ten percent of families with children under age 18.

Today, with the current recession, families resources are even more stretched, leaving people even more vulnerable should an accident or unexpected death occur. Based on this, it is more vital than ever to protect your financial security. If your family is struggling with debt today, think of how their struggle would increase without your income contribution.

Why Have a Life Insurance Policy?

You may have heard it said that “life insurance is for the living.” This is true. The proceeds from a life insurance policy can help your loved ones in numerous ways to continue their lifestyle without having to make drastic changes.

The proper amount of life insurance coverage can help your family to not only pay off immediate medical and funeral expenses, but to also eliminate other debts such as car loans, credit card debt, or even to pay off a mortgage.

Your loved ones long term goals, such as college funding or retirement planning, can also go unaltered with help from the proceeds of a life insurance policy.

What Type of Life Insurance Policy Do You Need?

The type of policy you need depends on your specific personal situation. Various factors that determine the best policy type as well as the amount of coverage include whether you are married or single, if you have children, how much debt you currently have (and expect to have in the future), whether you own a business, and how close you are to retirement.

Reviewing your coverage needs does not take long – sometimes as little as 15 minutes. And, it’s as easy as making a phone call to a qualified life insurance agent or using a life insurance coverage calculator online.

photo credit: The Cleveland Kid