In the US, a specific month has for some time been named as Life Insurance Awareness Month. If I had my way, we would do the same thing in Bermuda. It is that important.

Because of its implications, people seem averse to talking about life insurance — I find they often say ‘yes, yes, I’ll do it one day’.

But that is not good enough. You see, one minute you are fine, money is coming in, you can pay the children’s education, the bills and mortgage are covered — with something to spare.

Life is good, then it is turned upside down. The unthinkable has happened and your spouse has died in an accident. You are alone and suddenly on one or no income at all.

If you have planned properly there will be a life insurance policy that will cover the sudden shortfall in income, if you have not planned …. well, I have seen some of the consequences.

We insure our cars, our homes and our health because the law mandates that we do. Life insurance, however, is optional, often relegated to our ‘to do’ list. But life insurance replaces the insured person’s loss of income enabling the beneficiary to carry on with their accustomed lifestyle.

Experts recommend that you insure yourself for between five and 20 times your annual income but you need to gather your personal financial information and try and work out how much you would need in order to meet your financial obligations and expenses and decide what is best for you.

You need to cover things like funeral expenses, ongoing education costs, the mortgage and everyday living expenses. In 2010 it was estimated that it would cost almost $230,000 to raise a child to the age of 18.

When she was in Bermuda, US personal finance guru Suze Orman told the audience at the Southampton Fairmont Princess that term insurance is enough — that is, you look to get coverage for a certain amount of time, so it finishes when the kids have left home or the mortgage is paid, for instance.

You have to be sure in your own mind, then, that your estate is in order and that money has been put aside to cover future expenses.

It is not just couples who have to think about this — it is probably more important for single parents on whose shoulders the whole burden falls. You must think about leaving the children with enough money to continue their education, to pay for expenses such as funerals and to leave a roof over their heads.

September in the US is Life Insurance Awareness Month. Don’t wait until then, it may be too late.

Jonathan Robinson is a sales manager with Colonial Life Assurance.