Are you part of the 35 percent of all households who would feel a negative impact within one month of the death of a primary wage-earner?
Why do Americans own life insurance? A trusted resource, LIMRA (www.LIMRA.com), provides the latest insight which may help you evaluate your life insurance needs.
The top three reasons Americans give for owning life insurance in 2018 are to:
- Cover burial and final expenses (91 percent),
- Help replace lost wages/income of a wage earner (66 percent),
- Transfer wealth or leave an inheritance (63 percent).
LIMRA research finds that approximately 50 million households recognize they need more life insurance. Among individuals with life insurance, about 1 in 5 say that they do not have enough. About 20 percent of individuals who don’t own life insurance don’t know how much coverage they should have. 16 percent of consumers are not sure how much life insurance protection their spouse or partner has. In 2017, only 48 percent of employers offered life insurance to their workers, a 23 percent decline from 2006.
The top three reasons people do not buy (or do not buy more) life insurance:
- It is too expensive (63 percent),
- They have other financial priorities (61 percent),
- They already have enough coverage (52 percent).
What do Millennials say about life insurance?
Many people do not know how much coverage they need and what type of life insurance to buy. 6 in 10 Millennials feel this way. Nearly a quarter of people say no financial professional has approached them for life insurance. Once again, Millennials lead the response here: 43 percent claim they haven’t been approached.
Over fifty percent of Millennials said they would ask social media connections for advisor recommendations.
September is Life Insurance Awareness month!! This is a good month for Millennials, GenX-ers, Boomers, and the like to evaluate their life insurance coverage and adjust.