Parents Prefer Talks on Drugs and Alcohol More Than Life Insurance

Life Insurance Awareness Month

Life insurance discussions are quite uncomfortable for parents, according to a new study released this week by State Farm Insurance. While talks about drugs and alcohol, among other serious topics, are not always easy for parents, the study has found that some parents prefer these to the life insurance talk. During September’s Life Insurance Awareness Month (LIAM), experts hope to change this trend.

Life Insurance Conversations Are Tough for Parents

State Farm Insurance released the results of an online survey, conducted by Harris Interactive, that examines how comfortable parents are with speaking to their children about life insurance.

According to the survey, only 38 percent of the 2,600 parents surveyed feel comfortable speaking on this topic.

In fact, discussions about life insurance are so challenging for parents that they would rather talk about drugs, alcohol, religion or politics first. The only topics less comfortable than life insurance were sex/puberty and family finances.

Unfortunately, the lack of communication regarding life insurance has left many Americans feeling uninformed. Approximately one in five (22 percent) Americans feel they are not at all knowledgeable about the topic.

Get Educated During Life Insurance Awareness Month

If you are among the population who has little or no information about life insurance, it’s a great idea to use Life Insurance Awareness Month (LIAM) as a time to acquire the education you need.

To get you started, here is a little on the importance of life insurance:

  • Life insurance benefits most ages and circumstances: The survey revealed that 37 percent of people were prompted to acquire coverage when becoming a parent. In reality, coverage of some sort is beneficial at most stages in life, even as a college student, unless a substantial sum of money is already set aside to handle funeral expenses, debt and other financial responsibilities.
  • Life insurance is an important financial asset: State Farm found that parents are more likely to budget for cable TV (76 percent), a family vacation (69 percent), or a cell phone and service for each family member (62 percent). Unfortunately, only 59 percent would budget for life insurance, despite being far more affordable (averaging $150 annually) and beneficial to the family as it can pay for final expenses and cover ongoing expenses normally managed by a breadwinner.
  • Life insurance covers more than death benefits: Approximately 44 percent of survey participants believe that “life insurance benefits are only accessible when an insured family member passes away.” But many policies offer “living benefits” that can be accessed to cover college tuition, retirement and other emergency expenses.

To better educate the family on the importance of life insurance during Life Insurance Awareness Month, State Farm recommends creating a “Family Bucket List.” Adding life insurance as a vital component of the bucket list can show how many goals it can help the family accomplish, even if the primary breadwinner is no longer able to contribute.

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