According to LIMRA research, thirty-five percent of households would have financial difficulty within one month of a primary wage earner passing. Despite 59 percent of consumers have some type of coverage (individual or group), about 1 in 5 of those owners say they don’t have enough.
The number one reason consumers gave for not owning any or more coverage was cost, with 63 percent of consumers saying life insurance was too expensive. However, research shows that consumers tend to overestimate the cost of life insurance. Most consumers tended to overestimate the cost by three times its actual amount. Additionally, almost half of Millennials overestimate the cost of life insurance by five times the actual amount!
In the latest episode of LIMRA Unplugged, LIMRA Research Director Alison Salka reached out to some life insurers to get their viewpoints on the importance of life insurance. Mike Fanning from MassMutual, Salene Hitchcock-Gear from Prudential, and Andy Bucklee from Lincoln Financial Group help answer important questions like who needs life insurance, why don’t all consumers purchase it and how much life insurance is enough?
September is Life Insurance Awareness Month
In support of the Life Insurance Awareness Month (LIAM) campaign, LIMRA has put together facts, charts, and other resources - including the video mentioned above - in one place to help the media as they cover this important campaign`. To view these resources, please visit our LIAM page.