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:

  • 22 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.
  • 28 percent of wives and 15 percent of husbands don't have life insurance at all, and 10 percent 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?

I work in the life insurance industry, and I guess it seems easy to me. I see people purchasing life insurance every day, and I see them being satisfied with the experience and grateful for the peace of mind life insurance offers.

However, I also understand how confusing the life insurance world can be. When I first started working in this industry, it was all very confusing (and I grew up around this stuff too).

There are so many carriers that have life insurance plans available. There are so many companies and agencies and agents that sell life insurance. Some are independent, some are captive. An agent can be called a broker or a producer (or an agent). Carriers are also called life insurance companies. And so are agencies.

It can all be a very confusing.

At Wholesale Insurance, we understand this. We are working on making this process as easy for you as is humanly possible. We know you want to understand life insurance, and we know that you fear we'll sell you something you don't want or need.

I can assure you that our customer service representatives are consultants. They are not pressure salesmen. They want to help protect your family because they understand how important that protection is, and they will not go ahead until you are happy with the decision you are making.

This month—September—is Life Insurance Awareness Month. Our national spokesperson this year is Molly Shannon (who you might know from SNL). To hear Molly's story and why she feels life insurance is so important, go here.

Like Molly, I hope that you will take the time to look into life insurance and to get some. Term life insurance is very inexpensive, and the peace of mind and comfort it will give you and your family are really priceless.

For more information, please call us (1-800-823-4852). We look forward to making your life insurance experience a good one.

 

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