Life Insurance Awareness Month: What You Need to Know

Life insurance is an important type of coverage to consider when planning for the future. Yet it’s not uncommon for people to overestimate the costs, assume work-provided insurance is sufficient, or remain unaware of coverage options.¹ Understanding the basics is the first step. 

With life insurance, you agree to pay premiums to your insurance company. In return, your insurer provides a death benefit to your beneficiaries if you pass away, and usually it’s tax-free. Younger, healthier individuals are generally able to secure more affordable coverage. 

Two Main Types of Life Insurance

Term Life Insurance

• Provides coverage for a set amount of time
• Often costs less than permanent insurance
• May be used as an income replacement during key earning years

Permanent Life Insurance

• Offers lifelong coverage and can build cash value if managed correctly
• Can provide more flexibility with premium and policy options than term insurance
• May be useful for advanced estate planning and business strategies

Life insurance is about providing protection and peace of mind for the future. Talk to your Federated Insurance^® marketing representative about our life insurance options, or for a referral to a member of Federated^®’s network of independent attorneys for estate planning resources.

^{1 LIMRA. Adults Age 30 and Younger Overestimate Life Insurance Cost by 10-12 Times. June 25, 2025.  https://www.limra.com/en/newsroom/news-releases/2025/adults-age-30-and-younger-overestimate-life-insurance-cost-by-1012-times/. Accessed August 18, 2026.} 

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This article is for general information and risk prevention only and should not be considered an offer of insurance or legal, financial, tax, or other expert advice. The recommendations herein may help reduce, but are not guaranteed to eliminate, any or all losses. The information herein may be subject to, and is not a substitute for, any laws or regulations that may apply. This information is current as of its publication date and is subject to change. Some of the services referenced herein are provided by third parties wholly independent of Federated. Federated provides access to these services with the understanding that neither Federated nor its employees provide legal or other expert advice. All products and services not available in all states. Qualified counsel should be sought with questions specific to your circumstances. All rights reserved.