Could Your Family Face Financial Hardship

Nearly Half of U.S. Consumers Are at Risk

Imagine losing the primary wage earner in your household. It’s a tough situation to think about, but for nearly half of U.S. consumers, this scenario would lead to financial hardship within six months. According to the 2024 Insurance Barometer Study, 44% of U.S. consumers report they would face significant financial difficulty within half a year if their primary income provider passed away unexpectedly.

As we recognize Life Insurance Awareness Month, it’s the perfect time to talk about how life insurance can help protect families from these unexpected hardships.

What Happens If the Main Earner Is Lost?

The loss of a primary income provider doesn’t just cause emotional pain—it creates serious financial struggles. Think about all the expenses that need to be covered:

• Rent or mortgage payments
• Utilities and groceries
• Childcare or education costs
• Outstanding debts like loans or credit cards

Without the main earner’s income, many families would face financial stress in just a few months—or even weeks. 44% of consumers say they would struggle to make ends meet within six months if their primary income source were gone.

How Life Insurance Helps

Life insurance is a financial safety net. It can provide support when families need it the most by:

• Replacing lost income, allowing families to continue paying bills and covering expenses.
• Covering debts like mortgages, car loans, or credit cards, so loved ones aren’t left with financial burdens.
• Paying for final expenses, including funeral costs or medical bills, so savings aren’t depleted.

How Much Life Insurance Do You Need?

Not sure how much life insurance is enough? Here are simple steps to figure it out:

1. Income Replacement: A good rule is to have life insurance that covers 10 times your annual salary. This helps your family cover living costs for the years ahead.
2. Debt Coverage: Add up your debts, including mortgage, loans, and credit cards. Your life insurance should cover these amounts so your family doesn’t inherit the financial stress.
3. Future Expenses: Consider big future costs like your children’s education, extracurriculars, or even weddings. Make sure your policy can help with these milestones.
4. Final Expenses: Funerals and medical bills can add up quickly. Factor in enough life insurance to cover these costs.
5. Find the Right Balance: Make sure your policy provides enough coverage without stretching your budget. It’s about finding the right balance between affordability and protection.

Take Action This Life Insurance Awareness Month

Life Insurance Awareness Month is the perfect time to assess your coverage. If you don’t have life insurance—or need more—now is a great time to explore your options.

Steps to Get Started:

1. Talk to a Professional: If you’re unsure about what kind of policy you need, a life insurance professional can help guide you through the process.
2. Assess Your Needs: Think about your family’s financial needs—income replacement, debts, and future expenses.
3. Get a Quote: Find out how much coverage you can afford and get a quote.

Final Thoughts

Losing a loved one is hard, but life insurance can ease the financial burden for those left behind. Nearly half of U.S. families could face financial hardship within six months if their main income provider passes away. Don’t let your family be one of them.

Take steps today to ensure they’re protected.

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