As the economy struggles and market volatility rages from COVID-19 impacts and more, nearly a third of US households are going without life insurance coverage. This may be a bad idea.
Only 59% of Americans have life insurance, and about half of those with insurance are underinsured, according to industry-funded research firm LIMRA. Nine million households have only group life insurance (for example, through employers), which LIMRA says is not enough.
Why are people going without life insurance?
The obvious answer is that many people feel that they cannot afford it right now, especially when they are fearful about the economy and their investments. They may wish to put the money they would allocate to premiums into a rainy day fund. They may even need the money they would allocate to premiums to meet everyday living expenses.
Another reason may be declining availability. Many people rely on their employers for life insurance, and some employers have scaled back or eliminated coverage.
This has forced individuals to buy their own life insurance, but many just do not know where to go for life insurance, so they simply do without.
But going without life insurance isn’t a good idea for many people. Many households, for example, would have trouble meeting immediate living expenses if their primary wage earners die. Some may even have trouble meeting their own end-of-life expenses.
We can help you determine if you need life insurance and, if you do, purchase a policy that is right for you based on benefits and affordability.
Please reach out to us today. We’re here to help.