April is upon us, and with it comes the April Fool's Day traditional pranks and jokes. Of course, it's all in fun, but don't let your clients and prospects be fooled when it comes to their life insurance coverage.

Many people are often fooled by the notion that life insurance is unaffordable. In fact, according to LIMRA, the top reason given for not purchasing coverage is that it is too expensive. Yet more than half of Americans overestimate the cost of life insurance by three-fold.

LIMRA research also states that a lack of knowledge about life insurance can contribute to the coverage gap. Did you know?

• Just 31% of Americans say they are very or extremely knowledgeable about life insurance. Prior research shows consumers with higher knowledge are 30% more likely to have adequate life insurance coverage.
• More than half of Americans (53%) say they haven't purchased (or purchased more) life insurance because they are unsure how much they need or what type to buy.
• A third of consumers believe they would have to pay taxes on a life insurance death benefit, and 4 in 10 aren't sure. The reality is the proceeds from a life insurance death benefit are not taxed.
• About 30% of consumers view life insurance only for burial and final expenses. This perception of life insurance could result in not purchasing enough coverage to provide income replacement or enable wealth transfer — two key ways life insurance can benefit loved ones after a wage earner dies.

The need for consumer education is clear, and having proper life insurance coverage is no joke! That's why AIP Marketing Alliance suggests you take advantage of all the "insurance awareness month" campaigns throughout the year. Our marketing team creates and provides informative graphics and materials for sharing with your clients and prospects. Disability Insurance Awareness Month is approaching in May; keep an eye out for our latest resources coming soon!

For your current clients who are already insured, they can be fooled into a "set it and forget it" mindset about their life insurance policy. As a result, many leave their policy untouched for years unless prompted for a policy review. That's where their friendly neighborhood insurance agent comes in. You can help them understand how crucial regular reviews can be to ensure that life's changes don't leave them with a coverage gap.

So, when should you do policy reviews with your clients? It's a good rule of thumb to conduct reviews once a year or when their life and circumstances change. Some examples are:

• Getting married, remarried, or divorced
• Buying or selling a house
• Having a child or adopting a baby
• Buying or selling a business
• Accepting a new job or planning for retirement
• Health changes (i.e., quit smoking or lost weight)
• Receiving an inheritance
• Caring for elderly parents

Other items to check and potentially update during a policy review could include beneficiary changes, client personal details and billing information, and new coverage options or available life insurance riders.

To help you start that conversation, here are a few articles about life insurance policy reviews, perfect for sharing with consumers.

• Reviewing your life insurance policy with a financial professional
• How often should I review my life insurance?
• Make sure you still have the right life insurance through regular reviews

And as we've mentioned before (and we mean it, this is no prank!), the AIPMA team is working on a new Life Policy Review Kit with tools to help our wholesalers and agents. Along with the why and how of client policy reviews, it will include marketing materials like client emails and social media graphics. Be on the lookout for our expected May launch.

If you have any questions or want to discuss additional life insurance sales ideas, you can contact our Business Development team at (800) 783-5206 Press #2 or marketing@aipma.com.