PENNSYLVANIA — The Pennsylvania Insurance Department is urging Pennsylvanians to plan for financial security by considering their current and future needs and the role life insurance may play in providing protection to family members and loved ones.
Deputy Insurance Commissioner Dave Buono says that life insurance can be a valuable tool in protecting families financially in the event of a breadwinner’s death. “No one likes to think about their own death, but it’s important to be prepared for the financial consequences it can have on loved ones,” Buono said. “Life insurance can provide peace of mind and security for families when they need it most.”
Insurance Federation of Pennsylvania President and CEO Jonathan Greer echoed Commissioner Buono’s sentiments, saying that life insurance is an important part of any financial security plan. “Life insurance is an important tool that should be part of everyone’s overall financial protection plan,” Greer said. “Along with savings and investments, life insurance is a smart and affordable way for individuals to attain financial security for themselves and future generations.”
According to a study by Life Happens and LIMRA, most people are not financially prepared for the death of a wage earner within their household, with one in 10 respondents reporting they would feel financial strain in one week if their household’s primary earner passed away.
Life insurance provides financial protection for a family and ensures that dependents and other family members are not burdened with the cost for final arrangements, such as funeral costs, and may provide for future expenses such as college tuition and weddings, as well as ongoing activities of daily living. In fact, each day, the 457 life insurers licensed to do business in Pennsylvania pay out $77.5 million in life insurance and annuities to Pennsylvania families and businesses.
If you think a loved one who has passed had a life insurance policy on which you may be named as a beneficiary, but you don’t have the policy, the Insurance Department may be able to help.
The National Association of Insurance Commissioners (NAIC) developed a life policy finder service, which asks life insurance companies to search their records to see if an individual had a policy with the company. The insurance company will contact the requester if a policy is found, and the requester is named as a beneficiary. Act 48, signed in 2018 by Governor Tom Wolf, required all companies selling life insurance policies in Pennsylvania to participate in this service.
Pennsylvania consumers can learn more about life insurance and access the life insurance policy locator services on the Insurance Department website’s life insurance page. Information is also available by calling the department’s Consumer Services Bureau at 1-877-881-6388.
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