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LIFE INSURANCE AWARENESS MONTH • SEPTEMBER 2026

Who Needs Life Insurance?

Understanding eligibility, coverage options and when to review your protection

Life insurance is sometimes treated as something people only need after they become parents or reach a certain income level. In reality, the more useful question is this: Would anyone face a financial burden if you passed away? If the answer is yes, life insurance may be worth considering.

September is Life Insurance Awareness Month, an annual opportunity to consider whether the people who depend on you would have enough financial support if the unexpected happened. It is also a good time to review existing coverage, especially if your family, income, debts or long-term responsibilities have changed.

Who Should Consider Life Insurance?

Parents and caregivers. Life insurance can help provide financial support for children or other dependents, including everyday expenses, childcare, education and future needs. Coverage can be important for both income earners and stay-at-home parents because replacing unpaid caregiving and household responsibilities can be costly.

Couples and homeowners. If two people share a mortgage, rent or household budget, the loss of either person could make those expenses difficult to manage. Life insurance may give the surviving partner more flexibility to remain in the home and adjust to the loss of income or support.

People supporting other family members. Your dependents may include more than children. Someone helping an aging parent, an adult child with a disability or another relative may want coverage designed to continue that financial support.

Business owners and partners. Life insurance can be part of a broader succession or continuity plan. Depending on how a business is structured, coverage may help provide funds for ownership transitions, obligations or the financial impact of losing a key person. These arrangements require individualized insurance, legal and tax guidance.

Anyone concerned about final expenses. Even when no one depends on your income, a policy may help provide money for funeral costs and other final expenses. The appropriate policy and amount will depend on your goals and budget.

What Can a Life Insurance Benefit Help With?

Life insurance pays a death benefit to the beneficiaries named in the policy when the insured person dies while coverage is in force and the claim is payable under the policy. Beneficiaries may use those proceeds for needs such as replacing income, paying housing costs, maintaining household expenses, covering childcare or education, addressing final expenses or creating additional financial stability during a difficult transition.

The amount of coverage someone needs is personal. Income, current savings, mortgage or rent obligations, family size, future education costs, existing insurance and the length of time support may be needed can all influence the decision. Employer-provided life insurance can be valuable, but it is worth checking the benefit amount and whether the coverage can continue if you change jobs.

Is Everyone Eligible for Life Insurance?

Eligibility is not always a simple yes-or-no question. Many applicants can obtain some form of coverage, but the available policy types, benefit amounts and premiums vary. During underwriting, an insurer evaluates the application and determines whether it can offer coverage and at what rate.

Factors may include age, current health, medical history, tobacco use, occupation, driving history, certain hobbies and the type and amount of insurance requested. Answering application questions fully and accurately is essential. A health condition does not automatically mean someone cannot qualify, but it may affect the price, coverage amount or available products.

Will You Need a Medical Exam?

That depends on the insurer, the policy and the applicant. Traditional underwriting may involve detailed health information, medical records and an exam. Simplified-issue coverage may use health questions and other information without requiring an exam. Guaranteed-issue coverage generally does not require a medical exam or health questionnaire, but it may have age restrictions, lower benefit limits, higher premiums or other policy limitations.

No-exam coverage can be helpful in some circumstances, but it is not automatically the best or least expensive option. A licensed insurance professional can explain the underwriting process and help compare the choices available for an individual situation.

Term and Permanent Life Insurance

Term life insurance provides coverage for a defined period, such as the years when children are growing up or a mortgage is being paid. It typically begins with lower premiums than permanent insurance and generally does not build cash value.

Permanent life insurance is designed to provide lifelong coverage when policy requirements are met. Depending on the policy, it may build cash value and may offer features that term coverage does not. Permanent policies generally cost more, and their guarantees, premiums, fees and cash-value performance should be reviewed carefully.

Neither category is universally better. Some households may use term insurance for a temporary need, permanent insurance for a lifelong goal or a combination of coverage types. The right approach depends on the purpose of the coverage and what can be maintained comfortably over time. Working with an Allstate agency like Minnick Family Agency can make comparing these options easier: Aaron can help match your goals to term, whole or universal coverage offered through Allstate’s life insurance partner carriers, and, in some cases, discuss whether bundling life insurance with an existing auto or home policy fits your situation.

When Should You Review Your Coverage?

Life insurance should be reviewed when life changes. Marriage, divorce, the birth or adoption of a child, buying a home, changing jobs, starting a business, becoming a caregiver or experiencing a major change in income can all affect the amount and type of protection you may need. It is also important to keep beneficiary designations current and understand when existing term coverage expires.

Start With a Conversation

You do not need to know exactly which policy to buy before speaking with an agent. Start by identifying who depends on you, what expenses or goals you would want the benefit to address, how long the need may last and what premium fits your budget.

As your local Allstate agency in Colonie, NY, Minnick Family Agency can help you review your current protection, discuss available life insurance options through Allstate’s life insurance partner carriers and understand what to expect during the application process. Contact Aaron Minnick and the team to schedule a complimentary life insurance review and start protecting the people and responsibilities that matter most.

General Information DisclaimerThis article is provided for general educational purposes and is not a guarantee of eligibility, rates, benefits or coverage. Policy availability, features, limitations and underwriting requirements vary by insurer, product, state and individual circumstances. Life insurance is offered and issued by third-party companies not affiliated with Allstate; each issuing company is solely responsible for the financial obligations under the products it issues. Consult a licensed insurance professional and review the applicable policy documents before making a decision.

When an Insurance Agent's Basement Floods: A Real-Life Look at a Homeowners Claim

Allstate agent Aaron Minnick's failed hot-water tank left the finished basement in his home under nearly two inches of water. Here's what homeowners can learn from his claim.

After severe rainstorms moved through the Capital Region, Aaron Minnick, owner and Allstate agent at Minnick Family Agency, continued checking his basement for water. By Wednesday, everything appeared to be fine.

Two days later, his wife noticed that the water in the shower had turned cold. He went downstairs expecting to check the hot-water tank—and discovered one to two inches of water covering much of the family's finished basement.

The culprit wasn't the storm. The hot-water tank had failed at the bottom and had apparently been leaking for approximately two days.

Water in Your Basement Isn't Always "Flood Damage"

We often use the word "flood" to describe any situation involving unwanted water. From an insurance perspective, however, the source of that water matters.

This basement discovery came shortly after major rainstorms, but the damage was not caused by rainwater, surface water or groundwater entering the home. The water came from a failed hot-water tank inside the house.

That distinction was important. In this case, the resulting water damage was determined to be a covered loss under the homeowner's policy.

A standard homeowner's policy may cover certain types of sudden and accidental water damage originating inside a home, such as damage caused by a failed appliance or burst pipe. Coverage varies according to the policy, cause and circumstances.

External flooding is treated differently and is generally not covered by a standard homeowner's policy. Separate flood insurance is typically required. Sump-pump failures and sewer or drain backups may also require additional coverage.

Document the Damage

Aaron recorded the basement as he walked through it. The video showed standing water, saturated carpeting, damaged belongings, a visible waterline on the baseboards and wet insulation behind the walls.

Photos and video can be valuable when documenting an insurance claim. When it is safe, homeowners should capture:

• The apparent source of the water
• Standing water and visible waterlines
• Each affected room
• Damage to walls, flooring and baseboards
• Furniture, appliances and personal belongings
• Model and serial numbers when available

Safety should always come first. Standing water can create electrical, structural and health risks. Don't enter an affected area or handle electrical items if it may be unsafe.

The video documented the waterline and damage before mitigation work began.

Report the Claim Promptly

The damage was discovered on Friday morning, and the claim was filed through the Allstate app. The process took approximately five minutes.

Within two hours, an Allstate representative made contact. An adjuster called several hours later, and a professional mitigation company reached out within an hour of receiving the assignment. The mitigation team arrived that afternoon.

The response was especially significant because recent storms had caused widespread damage across the Capital Region, leaving restoration companies with an unusually high volume of calls.

If you discover water damage, notify your insurance agent or carrier promptly. Be prepared to explain when you discovered it, what may have caused it and which areas of the home were affected. Keep records of claim numbers, conversations, photographs, videos, damaged property and related expenses.

The Same Claims Process Available to Customers

Although Aaron owns an Allstate agency, he did not receive preferential treatment or an expedited response because of his role. He filed through the same process available to other policyholders. The claim was assigned to a claims representative, adjuster and mitigation company through the standard claims process.

Response times can vary depending on the damage, circumstances and number of claims being handled in an area. Experiencing the process firsthand gave him an opportunity to see it from the policyholder's perspective—the same process he regularly helps customers understand.

Take Steps to Prevent Additional Damage

Although the claim had been filed and professional help was on the way, standing water remained in the basement. He began pumping out some of it to help prevent the damage from getting worse.

Homeowners are generally expected to take reasonable and safe steps to protect their property from additional damage. Depending on the situation, this might include shutting off the water supply, moving undamaged belongings or arranging emergency water removal.

Document the conditions before beginning cleanup, save receipts and follow instructions from your insurer. Avoid permanent repairs or discarding significant damaged property until you have spoken with the insurer or adjuster, unless immediate action is necessary for safety.

The Claim Doesn't End When the Water Is Removed

Removing the standing water is only the beginning of the family's recovery.

The carpeting must be removed. The family's belongings need to be packed out, inspected and documented. Damaged drywall and insulation will be removed until dry materials are reached, and the basement must be thoroughly dried before reconstruction can begin.

Furniture and equipment, including the family's couch and treadmill, must also be evaluated to determine whether they can be safely cleaned or repaired.

Photographs, receipts, credit card records, product manuals and online purchase histories may help homeowners document what they owned and the approximate age or value of damaged items.

The water affected carpeting, furniture, walls and personal belongings throughout the family's finished basement.

Experiencing a Claim From the Other Side

As an insurance agent, Aaron regularly helps customers understand their coverage and navigate the claims process. Experiencing a significant loss in his own home gave him a new appreciation for the practical and emotional challenges customers face.

His family temporarily lost access to hot water, faced damage throughout a finished space used by their three sons and began what could be a month-long mitigation and reconstruction process.

He also recognized that some Capital Region families experienced even more severe damage from the storms.

Review Your Coverage Before You Need It

No insurance policy can prevent a hot-water tank from failing, a pipe from breaking or a storm from bringing heavy rain. Understanding your coverage can help you feel better prepared for what happens next.

This experience is an important reminder: don't wait until there is water on the floor to learn how your policy works.

Contact Minnick Family Agency to schedule a homeowners coverage review and better understand how your home and belongings are currently protected.

Coverage varies by policy, insurer and circumstances. This article is provided for general educational purposes and does not guarantee coverage. Please review your policy and consult with a licensed insurance professional regarding your specific situation.