Number of Consumers without Life Insurance on the Rise

The number of Americans skipping life insurance coverage is on the upswing, with challenging economic times leading the way in preventing consumers from acquiring coverage.

According to a recent survey from LIMRA, 30 percent of U.S. households do not have coverage, compared with 22 percent six years ago. Among those going without coverage are some 11 million families with children under age 18.

The number of American homes with an individual policy acquired outside any workplace coverage, about four out of 10, is at the lowest level in a century.

According to LIMRA analysts, the reasoning behind the declining interest in life insurance is varied.

A tight budget is one reason, as 40 percent of those polled by LIMRA indicated they had priorities besides insurance for limited dollars, including saving for retirement or paying off debt. According to insurance industry experts, it is hard for individuals to view the value of a product that will not kick in until their passing.

While many individuals are saying no to life insurance, a number of life products are less expensive than ever.

Term life policies have fallen due to the fact people are living longer and insurance companies have been able to lower their administrative costs with technology.

Individuals need to keep in mind that the loss of a breadwinner leads to a major financial toll on their survivors. Unless family members have a large supply of other assets to fall back on, life insurance is a good way to protect them.

Among the individuals who should strongly consider life insurance coverage are stay-at-home parents. The insurance would provide the family with income should the working parent need to take time off the job following the main caregiver’s passing. The insurance proceeds would also assist in paying for day care when the parent went back to work.

Individuals looking for life insurance are recommended to stick with term insurance, which according to some analysts can get the job done for less money than other kinds of policies.

A number of employers make available group term insurance as a benefit option, which does not require a medical exam but is typically more expensive. The reason for this is because workers enrolling oftentimes have health problems that would prohibit them from purchasing an individual policy, and that pool increases the prices for other individuals. In the event you are healthy, you will save money by acquiring an individual policy.

In order to obtain a quick calculation, experts advise individuals to purchase coverage worth five to 25 times their annual income. Given that it is such a wide range of numbers, analysts recommend consumers may be better off attempting to calculate coverage based on their individual circumstances.

If you haven’t thought about life insurance before, now could very well be the time to do it.