Life Insurance Awareness Month: What To Know

Life Insurance Awareness Month is a celebration that emphasizes educating people about the importance of life insurance — making it a great opportunity to evaluate whether you need a life insurance policy or should increase the coverage amount on your existing policy. Life insurance may be essential if you have beneficiaries who rely on your income, as it can help cover funeral costs and other major expenses after you die.

Life Insurance Awareness Month is an annual observance devoted to encouraging conversations about the value of life insurance each September.

Keep reading for more information about what to do during Life Insurance Awareness Month and how you can find the best policy for your situation.

Key Takeaways

Life Insurance Awareness Month is an opportunity to review your life insurance needs and consider how a policy may help protect your family’s financial future.
The monthlong observance was created in 2004 by the nonprofit Life Happens, and it takes place every September.
Over 40% of American adults say they don’t have any or enough life insurance as of 2024.
Life insurance can help your selected beneficiaries cover funeral costs, lost income, outstanding mortgage payments and other expenses after your death.

What Is Life Insurance Awareness Month?

Life Insurance Awareness Month is an observance focused on educating people about life insurance and how it can provide financial security for families.^[1] According to a 2024 report, more than 40% of adults in the United States believe they need life insurance or should increase their coverage amount, so this month is an excellent time to review whether you have a policy that adequately meets your coverage needs.^[2]

When Is Life Insurance Awareness Month?

Life Insurance Awareness Month is recognized every year in September. It is one of multiple informal celebrations created by the nonprofit organization Life Happens, along with Insure Your Love and Disability Insurance Awareness Month.^[1]

Celebration	Month	Purpose
Insure Your Love	February	Reminding Americans that purchasing life insurance is a great way to show your love for the people you care about most
Disability Insurance Awareness Month	May	Helping people understand the nuances surrounding disability insurance and how it differs from other insurance coverage types
Life Insurance Awareness Month	September	Teaching people that buying life insurance can be a straightforward and affordable way to provide for your loved ones financially

Life Insurance Awareness Month History

Life Happens established Life Insurance Awareness Month in 2004 due to the high percentage of Americans who weren’t sufficiently protected by life insurance coverage. The organization itself was founded in 1994, and one of its main functions is providing information and marketing resources to help educate consumers about the role life insurance can play in shaping their personal finances.^[3]

The Importance of Life Insurance

Life insurance is important for a number of reasons. Here are examples of some of the possible benefits of purchasing a life insurance policy:^[4]

Financial safety net for your loved ones
Income replacement
Assistance in covering final expenses, mortgage payments and any other debts your family is responsible for
Tax-free death benefits
Accumulation of cash that may be accessible before your death
Investment component that allows certain policies to grow in value
Additional coverage options that may help you customize your policy to match your exact coverage needs
Continuity for businesses that lose key employees
Estate planning
Final donation to your favorite charity

Who Should Consider Life Insurance?

In general, everyone should consider life insurance unless they have no intention of ever starting a family or are already wealthy enough to provide for their dependents after their death. See the following sections to learn more about why life insurance is important for different kinds of people.

Young Adults

Though life insurance may not be at the forefront of every young adult’s mind, buying coverage while you’re young is a great idea — even if you don’t yet have a family relying on your income. Life insurance tends to be cheaper the younger and healthier you are, since you’re less likely to die early on in the coverage period and may spend more time paying premiums.^[5] As a result, if you ever expect to have dependents, it may be cost-effective to get life insurance early.

Reasons To Buy Life Insurance Young

Newly Married Couples

If you don’t buy coverage earlier, you’ll definitely want to invest in life insurance once you get married because it can potentially replace your income in the event that you die, allowing your spouse to remain financially stable even if they currently rely on your salary. One option for newlyweds to consider is joint life insurance, which covers both spouses under the same policy.

There are two main categories of joint life insurance. First-to-die coverage pays out a death benefit after one spouse dies, offering financial support for the remaining spouse. Conversely, second-to-die coverage pays out a death benefit only after both spouses have died, meaning it primarily helps your children or any other beneficiaries you both leave behind.^[6]

Parents

In addition to protecting your spouse, life insurance can help you secure your children’s financial future — which may be especially important as long as they’re living under your roof. A life insurance payout can help cover big expenses for your children — such as student loans, a new car or a down payment on their first house — or it may simply help them maintain their everyday standard of living after you die.

Even if you’re a stay-at-home parent and don’t have an income to replace, it may still be beneficial for you to be covered by a life insurance policy. For example, after your death, your spouse may need to pay someone to perform some of the services you previously handled — such as cooking, cleaning or child care — and life insurance can help cover these expenses.

Homeowners

A mortgage is a massive financial obligation for young homeowners, and it could prove especially burdensome for the surviving spouse if the primary wage earner in a family were to die. To ease this burden, consider buying a life insurance policy that will last at least as long as your loan repayment period. For example, if you take out a 30-year mortgage, you may want an accompanying 30-year term life insurance policy that could help your spouse pay it off.

Business Owners

There are several ways in which business owners may benefit from buying life insurance to cover themselves and their employees, including the following:^[7]

Attracting and retaining talented workers and executives
Keeping the business operating smoothly amid economic uncertainty by borrowing against accumulated cash value
Supplementing employees’ retirement funds or supporting their family members if they die while the policy is active
Ensuring the seamless execution of the company’s succession plan by purchasing a partner’s share in the business after they die
Providing a fair inheritance for all beneficiaries if ownership of a family-run business cannot be split among them equally
Covering administrative costs and lost revenue associated with the death of a key person

Empty Nesters

Although life insurance may be less important once your children have grown up and moved out, it can still provide a crucial financial windfall for your spouse or other beneficiaries if you die as an empty nester. That said, if you aren’t already insured, your coverage needs may be different than those of a younger life insurance shopper. For example, if you’re 55, you could buy a 10-year term life insurance policy so your income will be covered through retirement.

Retirees

Over time, permanent life insurance policies accrue cash value, which you may be able to withdraw or borrow against before you die, depending on your policy details. Because of this, life insurance can be viewed as an investment opportunity, since you may be able to use this extra cash to supplement your retirement income.^[8] Of course, it may not make much sense to buy this kind of policy for the first time if you’re already retired.

Likewise, it may not make sense to buy life insurance with a large death benefit after retiring, since you no longer have an income to replace. Nevertheless, it may be worthwhile to get a cheap burial insurance policy to help cover your final expenses, such as funeral, burial or cremation costs. Funerals cost about $7,000 to $12,000 on average, so your family could encounter a significant financial burden after you die unless you’re insured.^[9]

Buying a policy with a large death benefit before retiring may result in a more secure inheritance for your children, since money from your estate could be seized to pay off your debts after you die.^[10]

How Much Life Insurance Do I Need?

How much life insurance you need depends on factors like how old you are, how much money you bring in each year and what you want your life insurance payout to cover for your beneficiaries. Here are a few different methods you can use to estimate the right amount of life insurance coverage for you and your family:^[11]

Human life value: A common recommendation is that you set your life insurance coverage limits at 30 times your annual income from ages 18 to 40, 20 times your income from ages 41 to 50, 15 times your income from ages 51 to 60, 10 times your income from ages 61 to 65 and a number based on your net worth after age 65. This accounts for the fact that you typically need more coverage when you’re younger.
Simplified approach: If you’re interested in a simpler calculation, you could buy a policy that provides coverage equal to 10 times your income plus the value of any major expenses you want the policy to cover — such as college tuition for your children or money set aside as an inheritance or a charitable contribution.
DIME formula: The most specific approach to choosing the right life insurance coverage amount involves adding up the total value of your outstanding debts, the income you would want to replace, your mortgage payments and a college education for your children. Then, you would select a policy with a high enough death benefit to cover all of these expenses.

Understanding the Different Types of Life Insurance

You may be able to choose from several unique types of life insurance, which may differ in terms of how they operate and when they can be beneficial. Below is a breakdown of some of the major types of coverage and when they are worth considering:^{[12][13][14][15]}

Coverage Type	Explanation	Pros	Cons
Term life insurance	Remains active for a set period of time — usually lasting up to 30 years — and then expires at the end of the coverage term	Most affordable way to secure life insurance with a sizable death benefit	You may reap no benefit from the policy if your coverage expires before you die and you didn’t purchase a return-of-premium rider
Whole life insurance	Provides coverage that generally lasts your entire life and accrues cash value that may be used to raise your death benefit or accessed before you die	Ensures that your family will reap a benefit from the policy at some point and may be able to supplement your retirement income or offer other benefits through its cash value component	Generally costs more than term life insurance because it provides more comprehensive protection and benefits
Universal life insurance	Offers permanent life insurance coverage with premiums and death benefits that can be adjusted over the course of the coverage period	Provides greater flexibility than whole life insurance by allowing you to change your death benefit if you want more coverage for your beneficiaries or need to lower your monthly insurance bills	Some types of policies grow cash value through higher-risk investment options, meaning your policy could lose money, depending on the performance of its underlying investments
Supplemental life insurance	Adds coverage on top of an employer-sponsored life insurance policy, which may only offer around $50,000 to $100,000 worth of coverage on its own	Accounts for the fact that the life insurance you get through work may not offer high enough coverage limits or may not be available after you leave your job	Likely costs more than your work-sponsored life insurance and may confuse beneficiaries who have to file claims on two separate policies after you die
No-exam life insurance	Replaces the medical exam that most policies require for approval with a simple questionnaire, accelerated underwriting or guaranteed approval regardless of your age or health status	Can be quicker and more convenient than standard underwriting methods and may be the only way to qualify for life insurance if you are already elderly or in poor health	Tends to be more expensive relative to the amount of coverage it provides and may not come with very high coverage limits — especially for older policyholders

Types of No-Exam Life Insurance

How To Celebrate Life Insurance Awareness Month

The best way to celebrate Life Insurance Awareness Month is to learn about life insurance and make sure you have an appropriate amount of coverage for yourself and your loved ones. While thinking about death can be uncomfortable, it’s important to make life insurance part of a financial plan that ensures your dependents will be taken care of if you experience an untimely death.

Another way to observe Life Insurance Awareness Month is to remember your own family members who have passed away. Think about how the time, resources and life lessons they invested in you have helped support you, and consider how you could do the same for others — including by purchasing life insurance. Doing so may highlight the financial security life insurance provides while also honoring loved ones who are no longer here.

Life Insurance Awareness Month at a Glance

Definition: Life Insurance Awareness Month is an annual celebration created by Life Happens, a nonprofit organization that teaches people about life insurance coverage and personal finances.
Purpose: The main goal of Life Insurance Awareness Month is to take time to educate people in the United States about the benefits of life insurance, including its potential to provide long-term financial security for families.
Celebration: You can honor the Life Insurance Awareness Month celebration in September by reviewing your life insurance coverage needs and reflecting on the most important people in your life who have died.
Who needs coverage: Most people would benefit from life insurance, though the exact amount and type of coverage recommended may vary from person to person. Examples of the types of people who generally need some kind of life insurance include young adults, married couples, parents, homeowners, business owners and older adults approaching retirement.
Recommended coverage levels: Many people opt to purchase life insurance with a death benefit ranging from 10 to 30 times their current income. However, you may also want to consider your age and the types of expenses you want to cover in order to establish a life insurance payout amount that better matches your coverage needs.
Coverage options: Term and whole life insurance policies differ when it comes to how long they remain active and whether they accumulate cash value over time. Depending on your circumstances, you may also want to consider coverage options like universal, no-exam and supplemental life insurance.

How To Review and Shop for a Life Insurance Policy

You’ll generally want to shop around to find a life insurance policy that meets your needs at an affordable price. Try to get quotes from three to five different insurance companies so you can see a range of benefits and premium options. You’ll need to give insurers information like your age, health, family medical history, career and hobbies so they can accurately underwrite your policy.

Though it can be time-consuming and tedious to gather quotes from each insurer individually, you can speed up the process by using an insurance marketplace like SmartFinancial. After you answer a brief questionnaire, we can connect you with a licensed insurance agent who can help you find the best life insurance policy for yourself and your beneficiaries. Click here to start comparing life insurance quotes for free today!

Get Matched With the Right Agents and Companies for the Best Life Insurance Quotes!

Frequently Asked Questions

Do I need life insurance if I’m young and healthy?

Life insurance may not be necessary when you’re young and healthy, but it’s still a good idea to buy coverage as early in your life as possible so you can lock in lower premiums for the duration of your policy’s coverage period.^[5]

What are the benefits of life insurance?

Some of the benefits of life insurance include replacing lost revenue, covering everyday living expenses, paying funeral bills, supplementing retirement income and ensuring smooth business operations after the death of a key person.

Is life insurance required?

No, life insurance isn’t required by law. Even so, it may be a wise investment for most people.

Is life insurance expensive?

Life insurance may be expensive for older people or those with health problems, but it will likely be fairly cheap if you buy coverage when you’re young and healthy.

What’s the difference between term and whole life insurance?

Term life insurance only provides coverage for a limited window of time and expires afterward, while whole life insurance generally remains active for your entire life. Whole life insurance policies can also accrue cash value, which may be added to your death benefit or withdrawn early. Because of these extra benefits, whole life insurance tends to cost more.

When should I review my life insurance policy?

It’s generally recommended that you review your life insurance coverage once annually or anytime you experience a major life event, such as getting married, having a baby or moving into a new home.^[16]

Sources

Life Happens. “About Us.” Accessed Aug. 20, 2026.
LIMRA. “2024 Life Insurance Fact Sheet,” Page 1. Accessed Aug. 20, 2026.
Life Happens. “Life Happens Unveils New Life Insurance Awareness Month Marketing Resources for Insurance Agents, Companies.” Accessed Aug. 21, 2026.
New York Life Insurance. “The Benefits of Life Insurance & Why To Get It.” Accessed Aug. 21, 2026.
Nationwide. “Should You Get Life Insurance as a Young Adult?” Accessed Aug. 21, 2026.
Guardian Life. “Joint Life Insurance for Couples.” Accessed Aug. 21, 2026.
MassMutual. “Life Insurance for Business.” Accessed Aug. 21, 2026.
Guardian Life. “Using Whole Life Insurance for Retirement.” Accessed Aug. 21, 2026.
Lincoln Heritage Funeral Advantage. “How Much Does a Funeral Cost?” Accessed Aug. 21, 2026.
Consumer Financial Protection Bureau. “Does a Person’s Debt Go Away When They Die?” Accessed Aug. 21, 2026.
Guardian Life. “How Much Life Insurance Do You Need?” Accessed Aug. 21, 2026.
Insurance Information Institute. “What Are the Principal Types of Life Insurance?” Accessed Aug. 21, 2026.
Insurance Information Institute. “What Are the Different Types of Permanent Life Insurance Policies?” Accessed Aug. 21, 2026.
Guardian Life. “Is the Life Insurance You Have Through Work Enough?” Accessed Aug. 21, 2026.
Ethos. “No-Exam Life Insurance: Get Coverage Without a Medical Exam.” Accessed Aug. 21, 2026.
Life Happens. “How Often Should I Review My Life Insurance?” Accessed Aug. 21, 2026.

Life Insurance Awareness Month: What It Is, Why It Matters and How To Choose the Right Coverage

Dylan Tate

Richard Murphy

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