SCC Offers National Life Insurance Awareness Month Reminders

A financial safety net: That’s what life insurance can be for individuals and families who have lost a loved one, especially if that loved one is a wage earner in their immediate family.

Many Virginians 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 in securing your loved ones financially now and in the future.

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. Understand the different types of life insurance and shop around to compare prices and coverage.”

White encourages Virginians who have life insurance to review their policies and beneficiaries regularly 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.

If you do not have life insurance, shop around and understand the different types of policies available – term or permanent – and how benefits are paid when you die. Compare premiums, coverage and claims service. Keep in mind that the type of policy you choose, your health status, age, gender, occupation, family health history and lifestyle can all impact what you pay for life insurance.

Consider the following when determining how much life insurance you may need: Does your spouse or partner work? Do you have any sources of income other than salary? Do you have life insurance through your job? Are there financial obligations that may fall upon family members if you die, such as a mortgage or rent, business expenses, medical expenses, car loans or student loans? How much money do you anticipate you will need for short-term and long-term goals such as retirement, providing care for a loved one or your children's education?

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.

Additionally, 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. Additional life insurance resources may be found on the association’s website.

###

Contact: Katha Treanor, 804-371-9141