Have you had these important conversations with your loved ones?
Families are more aware than ever that life insurance is a necessity; the global pandemic has really opened our eyes to the reality of the fragility of life. With life insurance awareness on the rise, individuals are taking action and having some vulnerable conversations with their loved ones about life, death, and finances. If you’re looking to do your part and raise awareness for the need for life insurance, take a look at these conversation starters below.
How much money does our family need to live comfortably?
This is a conversation that too few families are sitting down to have. It’s an uncomfortable conversation, and no one likes to address their family’s budget, but in order to secure adequate life insurance, it’s crucial to plan like your family is actually going to rely on it.
“According to the research, 54 percent of consumers in the U.S. (125 million U.S. adults) are living paycheck-to-paycheck, with 21 percent of this population struggling to pay their bills, meaning they have little or no money left over after spending their income,” says PRNewswire as of June, 2021.
If your family is like more than half the country, you can’t afford to lose even one paycheck. Having enough life insurance money on hand in case the worst happens is necessary for your family to stay afloat.
“LIMRA research also shows that 42% of households would face financial hardship within six months should a wage earner die unexpectedly — 25% would suffer financially within a month,” as of August, 2021.
What is your life insurance policy, and do we need more?
Although many full-time workers report that they have life insurance, research shows that only a small percentage of them can cite what their coverage is and how their plan works. “There are at least 102 million Americans living with a life insurance coverage gap,” says LIMRA.com.
Any amount of life insurance is helpful, but would your policy support your family for a year? Would your kids have any money for college? Would your spouse have to sell the house? At what point would that money ‘run out?’ If your employer is not offering enough life insurance, it may be time to look into purchasing an additional policy through another provider.
What kind of funeral costs should we expect?
If you and your loved ones have not had any conversations about end-of-life wishes, we absolutely suggest you do that this month! So many people are surprised to discover that the average funeral and burial costs $8,000 or more, according to Bankrate.com.
If you do not know your loved one’s wishes (or if they do not know yours), the cost can be even higher for last-minute decisions or availability obstacles. If you’re planning to use life insurance money to pay for these expenses, make sure you’re talking to your family about how to factor those costs into the overall policy needs.