Valentine’s
Day brings thoughts of roses and chocolate, but have your clients thought about
giving peace of mind? According to LIMRA research, 9 in 10 life insurance
owners say that is what they get from purchasing life insurance.
LIMRA
is joining Life Happens with its “Insure Your Love” campaign, which highlights
the importance of protecting the ones you love through the purchase of life
insurance.
More
than half of American adults (57%) own some type of life insurance. Three in 10
consumers have life insurance coverage at work, while 4 in 10 have individual
insurance.
The
majority of Americans believe that most people need life insurance, and
identify several reasons for owning it such as paying for final expenses (91%),
replacing lost wages (66%), and leaving an inheritance (63%).
So,
what prevents consumers from owning life insurance (or purchasing more)? The
top three reasons: it is too expensive (63%), they have other financial
priorities (61%), or they already have enough coverage (52%).
When it
comes to cost, consumers generally overestimate the cost of owning life
insurance. The Millennial generation, much more than Baby Boomers or Gen X, is
likely to overestimate the price tag for term insurance.
In
fact, in a recent LIMRA survey, only about a 1 in 4 consumers have a good idea
of what a $250,000 term life policy would cost for a healthy, non-smoking
30-year-old (see chart). The actual cost for the policy is roughly $160 per
year.
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