Love is in the air. And for financial professionals, that often means it’s time to talk life insurance.

You probably think I’m joking, but I’m not.

Obviously, it’s not the most romantic topic. But when you apply for life insurance, you’re doing it to protect people you love. And preparing your family for the unthinkable is one of the greatest ways to show love.

Unmet Needs

I recognize why people don’t like talking about life insurance. Who wants to ponder their own demise?

So the discussions never happen.

Perhaps that’s why it seems like so many folks are uninformed on life insurance. They don’t understand why they need it, and overestimate how much it costs.

It could also be why there’s an estimated $15.3 trillion in unmet life insurance need in the U.S. right now, according to financial research firm LIMRA.

Why Families Need Protection

Losing a family member is never easy, especially if it’s sudden. And when it’s the primary income earner, the situation can be even tougher because family finances may be in jeopardy.

Financial troubles compounding an untimely loss would be devastating for many families. But with life insurance in place, the financial burdens are easier to handle.

For instance, the policy’s death benefit could cover funeral costs, debts, family living expenses, college funds and more. And more importantly, it would provide immense peace of mind during troubling times.

Some of the primary reasons to own life insurance include:

n Protecting family assets, lifestyle

n Financially providing for family

n Settling an estate

n Ensuring peace of mind

Hopefully, you’d never need to make a claim. But if so, you’d be glad the policy was there.

Life Insurance Misunderstandings

I think a big reason people don’t have life insurance is because they don’t know what it’s all about.

To begin, life insurance mitigates risk. It provides protection for your family and the lifestyle they enjoy.

Many people also aren’t aware of the types of life insurance available. Different kinds of life insurance policies exist because people’s needs are unique.

Term insurance is one of the most popular types of life insurance on the market. It’s straightforward and meets the need of protecting a family’s assets and lifestyle.

A term policy provides a set death benefit for a set time period (the term). For instance, a “20-year, $250,000 term policy” would be in effect for 20 years and pay $250,000 to beneficiaries upon the death of the insured person during the term.

Term insurance is just one type of life insurance. Other types have different features. For example, life insurance can last someone’s entire life, provide investments within the policy, build cash value, and more.

Even businesses use life insurance. Several firms include policies in compensation packages and use insurance to protect key employees and more.

The point is, life insurance is probably more common than people think.

Cost Misconception

According to LIMRA, 83 percent of consumers think life insurance costs three times as much as it actually does — and young consumers think it’s five times as much.

To give an example, most Americans think it costs $400 per year for a healthy 30-year-old to get a 20-year, $250,000 level term policy. It’s closer to $150 per year, on average.

Protecting your family for $150 per year, which is less than $0.50 per day, seems like a good deal.

Generally speaking, buying insurance is a young person’s game — the younger and healthier you are when applying, the cheaper the premium can be. And once the price is set, it’s usually locked in for the entire term.

Plan with Love

While we’re still under Cupid’s spell, it makes sense to look into life insurance for you and your family.

If you have life insurance already, consider having a check-up — being underinsured is only slightly less dangerous than having no coverage at all. While determining how much you need can be tricky, it’s easier with the help of an insurance professional.

A truly kind act of love is taking care of people you care about when they’re in despair and great need. That’s why I think life insurance should be included in every family’s financial plan.

Holly Peterson is the owner of Elite Retirement Strategies and a former radio show host. You can find her online at eliteretirementstrategies.com or by calling 208-252-4345.