This year marks the 12th anniversary of Life Insurance Awareness Month (LIAM), an effort to raise awareness among consumers and producers about the need for life insurance. Americans by and large aren’t saving much money and many households are still mired in debt. Many see value in life insurance, but less than half have individual life insurance policies.
Now more than ever, it is vital that consumers protect their financial security. Life insurance has been providing this kind of protection to Americans for more than 200 years.
BUT THE TRUTH IS: More than 40% of Americans have no life insurance, according to the 2015 Insurance Barometer Study by Life Happens and LIMRA summarized below.
2015 Insurance Barometer Study
For the fifth year, Life Happens partnered with LIMRA to produce the Insurance Barometer Study, which looks at consumer trends and consumers’ perceptions regarding life insurance, retirement and their financial well-being.
Among the findings, cost is the reason most Americans give for not owning life insurance, yet 80% of consumers misjudge the price for term life insurance, with Millennials overestimating the cost by 213%, and Gen Xers overestimating the cost by 119%.
“We’ve consistently seen over the last five years that consumers think life insurance is more expensive than it really is,” says Marvin Feldman, CLU, ChFC, RFC, President and CEO of Life Happens. “We [want] to help educate the public about how affordable life insurance can be.”
The study also found that nearly one-third (30%) of Americans believe they need more life insurance and more than 2 in 5 (43%) say they would feel a financial impact within 6 months if the primary wage-earner died. However, the majority of Americans (54%) say it is unlikely they will purchase life insurance within the next 12 months.
In addition, most Americans continue to put other financial priorities ahead of purchasing life insurance:
- 29% of Millennials cited saving for vacation
- 23% Gen Xers said paying for recreational activities such as going out to eat, movies or shopping
- 49% of those 65 and older cited paying for expenses such as Internet, cable and cell phones
That’s why each September Life Happens coordinates Life Insurance Awareness Month. This industry-wide campaign is aimed at educating Americans about the importance of life insurance and helping them get the coverage they need.
For more information on life insurance and how it can be the best purchase you make this month (or this year) get in touch with the Arizona life insurance experts at DeWitt Risk Management Consultants today.