Are You Underinsured?
Statistics provided by LIMRA
Written by Jon Pinney
Marketing Director, Wholesale Insurance
I just got back from a LIDMA conference (the Life Insurance Direct Marketing Association). San Diego is a beautiful city.
While there, I realized that a very large portion of America is underinsured or not insured at all.
With the cost of term life insurance being what it is today, it's crazy to see so many people going without this vital protection—especially when the prices for term life insurance have dropped about 75% in the last 20 years!
While the cost of life insurance has decreased over the past 20 years, so too have the number of individual life insurance policies purchased. One of the few increases in life insurance policy sales happened in 2002, the year after 9/11. But the increase of new policies that year was only 3%!
Other statistics are astounding as well:
Twenty-two percent of families with dependent children claim that they do not have enough life insurance protection. They say that they would have immediate trouble or difficulty within a few months to meet everyday living expenses if a primary wage earner were to die.
Twenty-eight percent of wives and 15% of husbands don't have life insurance at all, and 10% of families with dependent children (3.6 million households) don't have any life insurance protection at all.
The question I ask myself is how can this be? With the prices constantly going down, and the availability of information and plans so prevalent (on the internet or in person), why is it that so many people go without life insurance?
Other Consumer Reports:
7 Secrets to SAVE BIG MONEY!
Avoid Overpaying for Term Life
