Life insurance is a critical component of many people’s financial strategies. With a great life insurance policy, you can ensure that your family continues to live the life they are used to in the event of your death. However, as the years go by, it’s apparent that many people don’t value life insurance as their parents and grandparents did before them.
60 Percent of Gen X and Gen Y Aren’t Financially Prepared with Life Insurance
A study conducted by LIMRA, a leader within the financial sector, states that only 40 percent of people considered Gen X and Gen Y are financially prepared with life insurance in the event of a household breadwinner’s death. With nearly 67 percent of baby boomers protected with life insurance, it’s clear that baby boomers place a higher value on life insurance.
70 Percent of Americans Don’t Understand Life Insurance
Insurance is a complex topic. Couple those complexities with the fact that few people want to have a conversation about their demise, and it’s easy to see how misinformed people are about life insurance. In fact, LIMRA conducted an IQ test of sorts to measure how much people knew about life insurance in general. Only 30 percent of the individuals tested passed the life insurance IQ test. Clearly, most people are not purchasing life insurance based on bad information, which leaves them exposed to financial risk.
40 Percent of Households Have Life Insurance Coverage
With the ability to pay down major loans using the death benefit, it sounds reasonable to assume most households have life insurance. Unfortunately, that’s simply not the case. In 1962, 72 percent of all households had life insurance, whereas in 2010, only 40 percent of all households have life insurance.
78 Million People Think They are Under-Insured
In a recent survey, leaders in the industry discovered that many people want life insurance death benefits to last an average of 14 years after the policy owner is deceased. As it stands, most people are only ensured enough for the life insurance benefit to last about three years after the policy owner passes. As a result, you need more life insurance than the average American purchases to be financially set for 14 years.
You can learn more about the life insurance policies available to you by contacting your independent insurance agent. We’re happy to assist you with finding a policy that fits your budget, yet meets your needs.
Is your family covered? Call The Insurance Station at (800) 845-0489 for more information on Des Moines life insurance.
There are lots of rumors and myths about life insurance that fly around. Have you heard any? Let us know in the comments section below.