SCC Offers National Life Insurance Awareness Month Reminders

Many Virginia families would face financial hardship if a wage earner died unexpectedly. Life Insurance Awareness Month, observed each September, is a reminder of the importance of life insurance.

The State Corporation Commission’s Bureau of Insurance reminds Virginians that there are many factors to consider when determining if life insurance is right for you and your family.

“Life insurance can provide peace of mind knowing that your loved ones will be protected financially if you die,” said Virginia Insurance Commissioner Scott A. White. “When planning for your family’s financial future, review your existing financial resources, debts and other liabilities. Also consider your family’s needs and goals.”

White encourages Virginians who have life insurance to review their policies regularly and update their policies and beneficiaries to ensure their coverage keeps pace with their changing circumstances. Life events such as a birth, divorce, remarriage or other changes affecting your finances (such as a new mortgage or a new job) may trigger a need to update your life insurance policy.

Consider the following:

• Does your spouse or domestic partner work?
• Do you have any sources of income other than salary?
• Do you have life insurance through your job?

Think about financial obligations that may fall upon family members if you die, such as mortgage or rent payments, business expenses, medical expenses, car loans or student loans. Also consider your family’s short-term and long-term goals such as your spouse’s or domestic partner’s retirement, providing care for a loved one or your children’s education.

When determining whether to purchase life insurance and how much coverage you may need, evaluate your existing resources and your family’s likely financial situation following a death.

Some employers offer life insurance as a benefit, so consumers should check to see if they have such a policy through their workplace.

Understand the types of life insurance available – term life or permanent – and how benefits are paid if you die. What you pay for life insurance (premiums) depends largely on the type of policy chosen, your health status, age, gender, occupation, family health history and lifestyle. Be sure to compare premiums, coverage and claims service when considering life insurance options.

Talk to an insurance agent or company or contact the Bureau of Insurance in Richmond at 804-371-9741 or toll-free at 1-877-310-6560 for questions or to verify that a company or individual offering life insurance coverage is licensed and in good standing. The bureau’s free Virginia Life Insurance Consumer Guide provides answers to many life insurance questions. That guide is available on the bureau's website.

The National Association of Insurance Commissioners offers a free Life Insurance Policy Locator Service that can help consumers find lost life insurance policies and annuity contracts insuring deceased individuals. Since its inception in November 2016 (through July 31, 2026), the Policy Locator matched 24,795 policies for Virginians and paid $515,512,900 in claims.

Additional life insurance resources may be found on the NAIC website.

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Contact: Katha Treanor, 804-371-9141