(Washington, DC) — The death of a family member is a painful experience for those left behind—emotionally, as you would expect, but often financially as well due to inadequate life insurance protection. According to LIMRA International, an insurance research firm, an estimated 68 million adult Americans have no life insurance, and most of those with coverage have far less than experts recommend.
To draw attention to the need for more Americans to include life insurance in their financial plans, the DC Department of Insurance, Securities and Banking (DISB) is encouraging District of Columbia residents to take stock of their life insurance needs during this year’s Life Insurance Awareness Month in September. Mayor Adrian M. Fenty signed a proclamation to urge residents to recognize the significance of life insurance.*
“It’s wonderful that Mayor Fenty signaled his support of this initiative by proclaiming September as Life Insurance Awareness Month,” said DISB Commissioner Thomas E. Hampton. “Mayor Fenty recognizes that life insurance is a financial planning tool that all families should explore. His support highlights the importance of this useful financial instrument for DC residents who presently lack the life insurance coverage needed to meet the long-term financial needs of their families.”
Statistics show the need for greater awareness of life insurance and its benefits:
- Three in 10 adult Americans have no life insurance at all.
- Insured Americans, on average, have only four times their annual income in life insurance coverage. Many insurance experts believe that people’s true need for coverage is 10 times their gross annual income, and sometimes more.
- Only 41 percent of adult Americans have individual life insurance. Many rely on insurance provided by their employers, leaving many employees without coverage if they were to lose their job or change jobs.
- Each year, a significant number of Americans (550,000) die prematurely. In fact, the chances a 25-year-old male will die before reaching the retirement age of 65 is nearly 1 in 5; for a female, the odds are 1 in 9.
- When a premature death occurs, insufficient life insurance coverage on the part of the insured results in 75 percent of surviving family members having to take measures to meet financial obligations, such as work additional jobs or longer hours, borrow money, withdraw money from savings and investment accounts, and, in too many cases, move to smaller, less expensive housing.
“People need to learn more about the benefits of life insurance so that in the event of a death, the family will be spared the economic hardships that too often accompany this type of tragedy,” Commissioner Hampton said about the troubling statistics. “We hope that the Life Insurance Awareness Month campaign will address the crisis of under-insurance that our nation faces today.”
DISB has signed on in support of Life Insurance Awareness Month activities with the National Association of Insurance and Financial Advisors (NAIFA) federation. DISB will use the month, designed to increase public awareness about the importance of life insurance in providing protection for unforeseen events and the benefits of advice from financial service professionals. DISB will discuss life insurance issues at several events around the city. Please check DISB’s website at disb.dc.gov for calendar updates.
Highlights
- Thursday, September 4, from 10 am to 3 pm, Elderfest
. DISB will have a table at the DC Office on Aging’s ElderFest at Freedom Plaza, between 13th and 14th Streets and Pennsylvania Avenue, NW. It will provide tidbits on life insurance, including long-term care insurance information for seniors and empty nesters.
Friday, September 5, from 4 pm to 10 pm 19th Annual Harry Thomas Senior Family Day. DISB will have a booth for staff to exhibit information on mortgage issues, and life and homeowners insurance issues at Taft Recreation Center, Dwight Mosley Athletic Field, South Dakota Avenue and Perry Street, NE.
Every Wednesday of the month, DISB will send out tips on life insurance. DISB will use various methods to ask District residents to consider, and to prepare for the “What ifs” in life. The agency will continue to have media appearances to discuss life insurance. DISB staff will attend other District events to give information on life insurance in select areas in the District of Columbia.
Each week of Life Insurance Awareness Month, DISB will be publishing consumer tips on life insurance awareness issues: