Every September, First Financial Security joins the national observance of Life Insurance Awareness Month (LIAM) to shine a light on why coverage matters for all people who want financial security and peace of mind. For too many families, life insurance remains something to “get around to later” — until later becomes too late. That’s why we dedicate four weeks each year to exploring the role life insurance plays in financial wellness.
This year, our theme is Life Insurance Step by Step. Over the month, we’ll walk through the process of understanding, choosing, applying for, and maintaining coverage, so anybody can understand just how easy it is to get protected. By breaking it down into simple steps, we hope to show that life insurance doesn’t have to be confusing or intimidating — it can be a straightforward way to protect the people who matter most.
Beginning with the Basics
Financial protection is about planning for the unexpected, and life insurance is one of the most powerful tools we have for that purpose. Yet many people delay coverage because they feel overwhelmed by the terminology of the industry or unsure about their options (of which there are many). The first step is understanding what life insurance actually is:
At its simplest, life insurance provides a death benefit — a payout to protect the standard of living of your beneficiaries when you pass away. That benefit can replace lost income, pay off debts, keep a business open, or simply provide peace of mind to loved ones in a difficult time.
A Foundation of Financial Protection
If financial planning is like building a house, life insurance is the foundation. Savings accounts, retirement plans, and investments all depend on your ability to earn an income — but what happens if that income is suddenly gone?
Life insurance is the financial safety net that supports every other part of your money strategy.It ensures that everything you’ve worked for remains standing, even when life doesn’t go according to plan.
Life insurance is the financial safety net that supports every other part of your money strategy.
Two Main Types of Coverage
When you look at the life insurance marketplace, you’ll see many product variations, but nearly every policy falls into one of two categories:
- Term Life Insurance: Coverage for a set number of years, usually 10, 20, or 30. Term policies are generally affordable and straightforward, making them an excellent entry point for young families, new homeowners, or anyone who wants protection during their working years.
- Permanent Life Insurance: Coverage that lasts a lifetime, often with a cash value component that grows over time. Permanent policies combine protection with financial flexibility, offering the chance to accumulate value that can be borrowed against or used later in life.
Why Now Matters
The best time to secure coverage is far before you think you need it — ideally, when you’re young and healthy. Premiums are lower, and the application process is simpler. But it’s never too late to take action. Waiting only increases both cost and risk, and the peace of mind that comes with coverage is worth pursuing at any stage of life.
The best time to buy life insurance is far before you think you need it.
The Step Forward
As we continue through LIAM 2025, we’ll build on this foundation step by step. Next week, we’ll explore how to choose the right policy for your needs. For now, the takeaway is simple: understanding the basics of life insurance is the first move toward protecting your family’s future. And with guidance from a licensed professional, you don’t have to take that step alone.
FFS Agents — share this post with your networks using our resources in the ABO.
