Why we celebrate Life Insurance Awareness Month

We know that life insurance may not be top of mind for everyone — life, after all, happens. Things may get in the way and starting your life insurance policy may get pushed further down your to-do list as the year rolls on. Additionally, some may avoid the topic altogether as they don’t want to think about what happens after they pass. We know, it can be uncomfortable. But we’re so glad you’re here.

We’re a little biased, but we think life insurance is one of the best ways to protect your loved ones, both now and in the future. We are happy to celebrate Life Insurance Awareness Month (#LIAM) with our industry partners and leaders to send you a gentle reminder that your life insurance policy should be at the top of your to-do list.

What is life insurance awareness month?

During the month of September, we celebrate Life Insurance Awareness Month—a campaign initiated in 2004 by our friends at Life Happens. They are an American non-profit company that’s mission is providing consumer information to help insurance seekers make smart financial choices.

We take the entire month to share life insurance tips, tricks, and information to make sure everyone is aware of the importance of financial planning. There can be a lot of assumptions and questions around life insurance and we’re here to answer all of them!

But let’s back up and start at the beginning.

Are you not entirely sure what life insurance even is? Let’s find out! Here’s how we define it:

Life insurance is an agreement between you and a life insurance company, where if you die, they will pay a death benefit: a lump sum of tax-free money to someone you choose. In exchange, you agree to periodically pay them an insurance premium: a small amount of money over time.

You both decide on the amounts of cash coming in and out and the timeframes involved, but in a super, simplified form, that’s really it.

You can read a more in-depth explainer about how life insurance works here: What is Life Insurance?

How life insurance can impact your family?

In 2020, we learned that life is fragile—our entire world can change in an instant. We know that it’s best to focus on what we can control, and while we cannot necessarily predict or control our own passing, we can certainly provide our loved ones with peace of mind and security knowing that their finances are taken care of.

It’s not the most comfortable topic to discuss, but your family will thank you for making arrangements that ensure they are taken care of when you do eventually pass.

During life insurance awareness month, we ask ourselves: If I died today, would my family be okay? Would they be able to financially sustain themselves without me?

If the answer is no, or you’re unsure, you’re not alone.

Currently, ​​around one-third of Canadians are without life insurance (source: LIMRA).

But those who do have it know the benefit. Having a life insurance policy means that when you pass, your family can use the insurance money (also known as a death benefit) however they see fit. That could mean paying off the mortgage so they can go payment-free, covering your funeral costs, taking time off from work to grieve, or paying off loans.

To you, it may be a few dollars in premium, but to your family, it could be everything.

How much does life insurance cost?

One of the biggest reasons people do not purchase life insurance is they think it’s too expensive. While we can’t put a hard and fast number in this article, we can tell you on average a 20-year term life policy with a $500,000 death benefit costs about $0.77 a day (for a 35-year-old non-smoking woman in good health).

To find out what life insurance costs for you are your age, head to these posts:

• How much does life insurance cost for a 30-year old?
• How much does life insurance cost for a 40-year old?
• How much does life insurance cost for a 50-year old?
• How much does life insurance cost for seniors?
• How does smoking affect life insurance?

How do you get life insurance?

We’re so glad you asked! It’s kind of one of our specialties!

Step 1: Determine how much life insurance you need. Think about how much income you get each year, and each debt you may have: whether that’s a car loan, student loan, or mortgage. You take your income, your current savings, and your liabilities (debts). Think about the kind of lifestyle you want your family to uphold, and how much you would need to cover your outstanding debts, plus sustain this lifestyle.

The easiest way to figure out how much life insurance you need is to check out our calculator!

Step 2: Determine whether you want a term policy or a whole life insurance policy.

Are you looking to commit to a life-long plan or just a term of 10, 20, 30 years? Each insurance provider has different premium prices and qualifying questions for their products. Your best bet is to speak to one of our advisors about your specific needs. They can recommend great options from one of our 20+ insurance providers.

• Read more about term life versus whole life insurance

You can speak to our experienced advisors today about what kind of life insurance is right for you.

Step 3: If you already have a life insurance policy, make sure your information is up to date so your needs are met. While the ultimate goal is to make sure that everyone gets coverage in place to protect their financial future, we also want to make sure that our existing clients are checking up on their policies to make sure that it fits their current lifestyle. For example, if you’ve recently bought a house or taken on a new loan, it may be an opportunity to look at your coverage limits to make sure they’re taken care of.

Many people do not know they have a gap in coverage. Check out our quick and easy insurance check-up to make sure you’re protected!

No Dr.’s office waiting rooms or weigh-ins required.