Due to advancements in medicine, people are living longer – But, that doesn’t necessarily mean they have grown wiser, as Americans are failing to obtain life insurance to protect themselves and their loved ones.
An annual study conducted by the Life and Health Insurance Foundation for Education (LIFE), called “The Insurance Barometer Study” found that almost one-third of respondents believe they need more life insurance; that includes 20 percent of current policyholders and about half with no coverage.
The report also found:
- The two main excuses for failing to purchase adequate amounts of life insurance is because it’s too expensive (83 percent,) and because of other financial obligations (85 percent).
- When asked for an estimate of the annual costs of a 20-year level-term life policy for a 30-year-old, the respondents over-estimated at $400. Younger adults, those most likely to qualify for preferred pricing, overestimated the actual cost of $150 by a factor of seven.
- Consumers believed they couldn’t afford life insurance, yet they had no idea how much it actually cost.
- The respondents were found to be more concerned with paying their mortgage or rent (31 percent), or losing money on investments (26 percent) than with buying life insurance.
Obviously, there are huge misconceptions in the world of life insurance and the true cost to obtain this protection that could save families from losing their home, and prevent financial disaster in the event of an unfortunate death. It’s our job as National Agents Alliance insurance agents to bust these myths and explain to clients that life insurance is much more affordable than it’s widely believed, and how it can help keep a family in their home, their kids at their school and have everything they need after their untimely death.