Governor Bill Lee proclaimed September as Life Insurance Awareness Month, a time to make sure you are covered before you need it, according to a local agent.
Agent Dana Fields said purchasing life policies at a younger age allows consumers to lock in rates for 20 or 30 years while they are typically at their healthiest. Fields said many insurance providers offer a discount on personal insurance for clients who also maintain a life insurance policy.
“I would say please let’s all just try to think about life insurance, you know, between 25 and 30 at least have, take a few minutes and let someone explain it to you and then you can make a big decision that could change the lives of the ones left behind,” Fields said.
Fields said the primary purpose of life insurance is to provide a financial security blanket for loved ones to prevent devastation following a death. Fields said families with two working parents and a mortgage could face the possibility of losing their home within 90 days if they lose a primary income without adequate coverage.
“It’s a way of financial protection and providing love to those after you’re gone instead of leaving behind possible financial devastation, mainly due to younger children or if you had debt that needs to be paid off,” Fields said. “So it’s just like leaving an extra security blanket for your family once you pass off.”
Fields said term life insurance is often the most affordable option for young people because it provides a set amount of protection for a specific period. Fields said this type of coverage is designed to last until a mortgage is paid off or children are grown, though it does not build cash value like a whole life policy.
“You buy a set amount of insurance at the cheapest price on the market for a set period of time,” Fields said. “So we would all like to have that if we have a mortgage, definitely if we have children and are planning on them getting to go to school and, you know, hopefully on to college.”
Fields said whole life insurance functions as both protection and a savings vehicle because it builds cash value over time. Fields said while whole life premiums are more expensive, the policy remains concurrent with the individual’s lifetime and does not expire.
“When you buy whole life insurance, it’s insurance protection at a set price for your whole life,” Fields said. “And you can build up cash value. So it does have a savings account with it.”
Fields said determining the necessary amount of coverage involves calculating outstanding debts, mortgage balances, and future educational needs for children. Fields said agents work with customers to find a happy medium between the ideal coverage amount and what the individual can afford within their monthly budget.
“Don’t wait until you’re 50 or 60 and then think about life insurance, because a lot of times it’s just not affordable… there’s health issues that come up that we’re plagued with that hinder getting a policy at an affordable price,” Fields said.
