In my last blog I discussed how the cost of life insurance has dropped over the past several decades. That’s what’s good about the life insurance industry in the U.S. So, what’s not so good? The life insurance industry has done a lousy job of communicating this—and why this product is so important for the security of their families—especially to the middle market.
A recent study by LIMRA (Life Insurance and Marketing Research Association) provides us with these facts:
- Three in ten American households have no life insurance.
- The middle market represents the largest segment of uninsured households, with half (36 Million) admitting they need more life insurance.
- Seven in ten women agree that life insurance is a necessity and all people should have it. Only 62% of men believe this to be true.
- One-third of wives own no life insurance at all—despite the fact that 7 in 10 households are dual-income, and nearly 30% of wives earn more than their husbands.
- The top reasons people don’t buy life insurance are: competing financial priorities or because they think they can’t afford it.
- Consumers overestimate the cost of life insurance by as much as three-fold.
- Six in ten consumers don’t recall being approached to buy life insurance in the last two years.
- Consumer’s lack of knowledge about life insurance was keeping some from buying: Twelve % could not decide what type or how much to buy, 10% were afraid they would make the wrong decision and 8% said they did not know enough about life insurance.
Boy, do we as an industry need to do a better job! I hope that the information I have provided in LifeInsuranceInsights.com has eliminated some of the fears people have had about making the wrong decision. The worst wrong decision is to do nothing! If you still don’t know what kind of insurance to buy, buy term. It provides you with the most death benefit for the lowest premium. You’ll be amazed at how low the cost might be. Put a term policy in force and then continue your study if you feel you need more information. If you don’t know an agent to talk to, go to www.selectquote.com. Get on the good side of these statistics today!
Coming up…the myth of being able to bind life insurance.