With American families on tight budgets and unemployment numbers at an all-time high, it seems like a no-brainer to ensure that the breadwinners of the household have proper life insurance. Surprisingly, the number of people living without life insurance is on the rise.
According to recent survey by Life Insurance Market Research Association, an insurance industry think-tank and research group, 30 percent of U.S. households don’t have coverage, compared with 22 percent just six years ago. Even more alarming is that among the households that don’t have coverage, 11 million are families with children under the age of 18.
“Despite today’s economic challenges, it is important that families think about the fact that forgoing life insurance can be a dangerous decision,” said Mark Lublin of Life Insurance 2.0. “Life insurance can bring much-needed peace of mind.”
Many surveyed by LIMRA said they felt that the life insurance coverage offered through their employer is enough to meet their needs. Yet in the past year, someone became unemployed in 15 percent of all U.S. households.
There are several reasons for the upswing in the number of people living without life insurance. However, LIMRA found that the drop in life insurance ownership is not because families feel safe. Among households with children under 18, four in 10 say they would have immediate trouble meeting everyday living expenses if the primary breadwinner died today.
Obviously, the economy and stricter household budgets have contributed to their risky decisions to forgo life insurance. These consumers may not be aware that life insurance products are cheaper than ever.
The cost of term life policies, which provide coverage for a specific period, have dropped because people are living longer and insurers are using technology to lower their administrative costs.
A new poll of 30 leading life insurance companies conducted by Life Quotes, Inc., has found that life insurance rates remain at all-time lows.
“With life insurance rates at such favorable levels, now is actually a great time to purchase a policy,” Lublin said.
Lesley Reuben writes for Life Insurance 2.0. To learn more or to compare
life insurance quotes, compare term life insurance, or get an instant life
insurance quote, visit http://www.lifeinsurance20.com
