(BPT) - May 2 is National Life Insurance Day. For millions of Americans, now is the time to re-examine your current policy or think about applying for one. Even though most people think life insurance can be complicated, the need has never been greater. Only 51% of U.S. adults have a life insurance policy, representing a $14T coverage gap in the United States (Greenwald Research), and nearly 41% of adults in the U.S. are somewhat or not at all knowledgeable about life insurance (Life Happens and LIMRA).
Don't be intimidated. It's important for everyone to protect their income, assets and loved ones from life's uncertainties.
Life insurance has also changed drastically over the years to include new living benefits policyholders may potentially take advantage of while they are still living to help pay for costs associated with certain serious qualifying illnesses, caregiving responsibilities and other life events.
According to National Life Group, there are several key things to consider as you decide if you need coverage or should update an existing policy.
Key questions for those without life insurance:
Does anyone depend on you financially?
If so, it may be a good idea to explore life insurance options to financially support your dependents should anything happen to you.
Are you a parent/grandparent or a caregiver for dependents or elderly parents?
Parents and grandparents should plan ahead to understand what options are available for estate planning and their children's future. Additionally, caregivers of elderly parents may be able to take advantage of certain living benefits of their life insurance policy for support.
Do you have any debt you co-own or are co-signed with? (including a mortgage)
If you have a significant amount of debt you are co-signed with another party (the most common being a mortgage) without coverage, they could be left holding the bill for the entire debt.
Do you have an estate that needs protection?
It's smart to have protection in place as part of a dedicated estate plan to ensure the quick, amicable and seamless transfer of wealth from one generation to the next.
Key questions for those with life insurance:
Have you started a family or have family members that are financially dependent on you?
If you recently started a family and have an existing policy, it may be worth speaking with your agent to ensure your new family's coverage needs are met. Your dependents can include anyone from children to parents to siblings with special needs.
Have you purchased a new home, changed careers or received a change in salary?
Significant changes in your income may require a new look at your existing policy to ensure your coverage works for you.
Is your policy several years old and has not been recently reviewed?
Ask your agent to see if you are eligible for new benefits or policy riders. Insurance partners are frequently adding new benefits or features for their policyholders. If your policy isn't automatically enrolled in new features, it may be time to speak with your agent to review your current policy.
Whether you already have a life insurance policy or are considering one, answering these key questions will help as you decide if you need coverage or should update your existing policy. For more information, visit www.nationallife.com.
Living benefits are provided by no-additional-premium Accelerated Benefits Riders (ABRs). Payment of accelerated benefits will reduce the cash value and/or death benefit otherwise payable under the policy. Receipt of accelerated benefits may be a taxable event, may affect your eligibility for public assistance programs, and may reduce or eliminate other policy and rider benefits. Please consult your tax professional to determine the tax status of any benefits paid under this rider and with social service agencies concerning how receipt of such a payment could affect you.
Riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless you also have a need for life insurance. Riders are optional, may require additional premium, and may not be available in all states or on all products. This is not a solicitation of a life insurance policy.
The companies of National Life Group and their representatives do not offer tax or legal advice. For advice concerning your own situation, please consult with your appropriate professional advisor.
