What's Happening?
Life Insurance Awareness Month (LIAM), organized by Life Happens, is an annual event in September aimed at educating consumers about the importance of life insurance. The 2025 Insurance Barometer Study by Life Happens and LIMRA reveals a significant knowledge gap among American adults regarding life insurance products, which hinders their ability to secure adequate coverage. LIAM seeks to address this gap through a national outreach campaign that disseminates information about life insurance, reaching millions of Americans. The campaign also provides opportunities for insurance agents and advisors to engage with clients and potential customers by utilizing LIAM-themed content and messaging. This initiative is particularly crucial as the study indicates that many consumers, especially young adults, overestimate the cost of life insurance, leading to a substantial need gap.
Why It's Important?
The knowledge gap in life insurance understanding has significant implications for American households, particularly those with annual incomes below $50,000, and for Hispanic, Black, and female consumers. The study highlights that many consumers perceive life insurance as too expensive, which is a misconception that LIAM aims to correct. By reducing this knowledge gap, LIAM helps to address the need gap, which affects approximately 100 million Americans. For financial professionals, LIAM offers a platform to strengthen client relationships and increase sales by providing accurate information and dispelling myths about life insurance. This initiative not only benefits consumers by improving their financial security but also enhances the role of advisors as trusted resources.
What's Next?
As LIAM continues to promote awareness, the focus will likely remain on leveraging social media to reach a broader audience. The 2025 Barometer Study shows a growing trend of consumers using social media to research financial products, with 62% of adults and 80% of those under 45 engaging in this practice. Financial advisors are encouraged to utilize LIAM-themed content to build their online presence and connect with consumers in this digital space. The ongoing challenge will be to maintain and expand these educational efforts to further close the knowledge and need gaps in life insurance coverage.
Beyond the Headlines
The emphasis on social media as a tool for education during LIAM reflects broader shifts in consumer behavior and the increasing importance of digital engagement in financial services. This trend underscores the need for financial professionals to adapt to changing communication channels and to position themselves as accessible and knowledgeable advisors in the digital age.
