Small Steps to Achieve “Financial Fitness”

Small Steps to Achieve “Financial Fitness”

Fitness can apply to many aspects of your life, including your finances! To be financially fit, getting life insurance is an important step to take. Life insurance is all about self-worth and taking the time and money to protect you and your family for the future.

Many do not have life insurance because of inaccurate information or misinterpretations. For example, the 2018 Insurance Barometer Study by LIMRA and Life Happens found that 61% of people don’t buy life insurance, or more of it, because they say they have other financial priorities. However, in reality, having life insurance could protect you and your loved ones from future, unexpected financial difficulties.

September is Life Insurance Awareness Month, so below are some quick facts and tips to consider to further your knowledge about life insurance.

  1. There is a difference between being wealthy and being financially fit. Because it takes risk into consideration, life insurance is one of the main steps in becoming financially fit. Life insurance addresses the risk of a loved one dying prematurely and how life insurance can aid families during this difficult time.
  2. The 2018 Life Insurance Barometer Study found that 3 in 5 adults have life insurance, yet 35% of households would feel the financial impact within a month if the primary earner in the household died. This is a wake-up call to truly consider getting life insurance coverage and ensuring you and your family have the correct amount of coverage.
  3. Even if an individual has life insurance, it may not be enough. The Life Insurance Barometer Study found that 1 in 5 people who have life insurance say they need more. There are many events that may occur in your life that are a sign that you need to increase your life insurance coverage.  For example, if you and your spouse have a child, buy a new home, your income has increased, or if your lifestyle changes. These are all warning signs to review your life insurance plan and ensure you have enough coverage.
  4. Get life insurance sooner rather than later. It is better to choose which model is best for your family now before a tragic or lifestyle event may occur. The best time to get coverage is when you are young and healthy and there is a low price on life insurance, which is less than the price of a cup of coffee. 
  5. Life insurance is not just for couples or professionals with a family and growing expenses. For example, life insurance could aid Millennials with student loans. According to the 2018 Insurance Barometer Study, Millennials have been identified as the group that needs the most information and clarity about life insurance, including coverage amounts and product types. 

There are many free resources to learn more about life insurance. Every individual has a unique situation, so to determine the best life insurance coverage for you, it is best to sit down and discuss your goals and priorities with a qualified risk management and insurance professional.

If you have any questions or would like to discuss your own coverage needs, please contact me at hpurvis@rcmd.com or at 443.921.3813 (ext. 1327).