Marc Sigmon, MBA, founder of Marc Sigmon Insurance Agency
September is Life Insurance Awareness Month, created by the nonprofit organization Life Happens to remind Americans about protecting those who depend on them. As a proud member of the National Association of Insurance and Financial Advisors, I support and promote this awareness annually.
That reminder remains necessary. According to the 2025 Insurance Barometer Study from LIMRA and Life Happens, 51% of Americans between ages 18 and 75 report owning life insurance. Yet 40%—approximately 100 million people—say they need coverage or need more than they currently have.
Those figures represent families who may be left with a mortgage, household bills, debts, childcare or caregiving responsibilities, education expenses and the sudden loss of someone’s income.
The reality is that after the flowers wilt, the cards are stored in a box and the phone calls stop, the financial obligations continue. A family may be grieving while also confronting a drastically reduced household income.
Final expenses create an immediate burden. According to the National Funeral Directors Association, the national median cost of a funeral with viewing and burial was $8,300 in 2023, while the median cost of a funeral with cremation was $6,280. Those figures may not include every cemetery charge, monument, reception, travel expense or unpaid bill a family faces.
When no plan exists, we increasingly see an online fundraiser created after someone dies.
Let me be direct: GoFundMe is not a life insurance policy. It does not have to be a family’s only option.
Crowdfunding can be a generous way for a community to rally around a grieving family. I respect those who contribute. But community generosity should provide additional support—not become a family’s primary financial strategy.
A fundraiser depends on who sees it, who shares it and how much others can afford to give. It requires grieving relatives to publicly explain their loss, ask for help and hope enough money arrives in time. GoFundMe charges no fee to create a personal fundraiser in the United States, but its published pricing includes a transaction fee of 2.9% plus 30 cents per donation.
That is fundraising. It is not a protection plan established before the loss.
I have personally delivered life insurance proceeds to surviving family members. No amount of money can replace the person they loved, and a benefit check cannot remove their grief. It can, however, provide time to mourn without immediately wondering how they will pay the mortgage, keep food on the table or maintain stability for their children.
The gift of life insurance is a tangible way to say, “I love you,” to the family members left behind. It represents protection made possible because someone took the time to prepare for those they loved.
Life insurance should be considered for more than funeral expenses. Would a surviving spouse need time away from work? Could the household continue paying its mortgage and monthly bills? Who would fund a child’s education? Would aging parents, a family member with special needs or others who depend on your care remain protected?
Owning a policy, however, is only part of the responsibility. It must also be reviewed.
My family learned that lesson painfully when my stepfather died unexpectedly while I was serving on active duty in the U.S. Navy. He had life insurance, but the beneficiary information had not been properly updated following a divorce and second marriage. My mother did not receive the proceeds.
That experience became part of why I entered this profession and why I encourage families to review—not merely purchase—their coverage. A policy written years ago may no longer reflect a marriage, divorce, birth, adoption, home purchase, business obligation or caregiving responsibility. Beneficiary designations should be examined carefully because they generally determine who receives the policy proceeds.
Cost, Convenience and Underwriting
We have all seen commercials offering life insurance for only a few dollars per month, sometimes without a medical examination. Yet cost remains widely misunderstood.
Life Happens and LIMRA have reported that most Americans overestimate the cost of life insurance by approximately three times or more. Their 2025 Insurance Barometer Study found an even greater misconception among healthy adults ages 18 to 30, who overestimated the median cost of a $250,000, 20-year level-term policy by 10 to 12 times.
The good news is that life insurance may be more affordable than many people assume. However, an advertised price alone does not establish whether the amount, duration and terms of a policy will meet your family’s needs.
Underwriting should not be feared. It is the process an insurance company uses to evaluate eligibility and determine an applicant’s risk classification and premium. Depending on the policy and applicant, it may involve general health questions, prescription records or a medical examination.
Providing this information may allow a healthy applicant to qualify for more favorable rates than would be available through some guaranteed-issue policies. The National Association of Insurance Commissioners cautions that guaranteed-issue coverage may cost more than traditionally underwritten coverage for an applicant who could qualify for preferred rates.
Receiving a price without discussing basic health information may be convenient, but convenience alone does not establish whether the coverage is suitable. Ask what the policy covers, how long it lasts, whether premiums can increase, whether benefits are graded or limited during the first years, and what exclusions apply.
This September, take three practical steps. Have an honest conversation with your family about what would happen financially if someone did not come home tomorrow. Use the free Life Insurance Needs Calculator from Life Happens to begin estimating the income, debts and future obligations that may need protection. Finally, meet with a licensed insurance professional to review your needs, existing coverage, policy ownership and beneficiary designations.
Life insurance is not about placing a value on someone’s life. It is about making certain the people you love receive a plan instead of being left with a plea for help.
About the Author
Marc Sigmon, MBA, is the founder of Marc Sigmon Insurance Agency, a veteran-owned agency based in Fallbrook. He has worked in Medicare and health insurance for over a decade, helping individuals, families and veterans understand their coverage options. Marc is a two-time recipient of the NAIFA Quality Award for Health Insurance and Employee Benefits, a graduate of the BBB Empower by GoDaddy Accelerator, a 2025 San Diego Business Journal Veteran Leader of Influence and a finalist for the 2026 BBB Torch Awards for Ethics. He remains actively involved in veteran advocacy, small-business support and health insurance education throughout North County San Diego.
