September is Life Insurance Awareness Month. Perfect time for LIMRA's new study to expose just how many Americans have little financial protection should they experience a catastrophic life event.
New research found 30 percent of American households (roughly 35 million people) have no life insurance coverage, and ownership of individual life insurance has hit a 50-year low – only 44 percent of households.
The Trends in Life Insurance Ownership is conducted every six years. According to the study, the number of households with life insurance coverage has dropped 11 million since 2004.
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"The numbers tell a grim story," said Robert Kerzner, CLU, ChFC, president and CEO of LIMRA, LOMA, and LL Global, in a statement. "A majority of families either have no life insurance or not enough, leaving them one accident or terminal illness away from a financial catastrophe for their loved ones."
Almost 80 percent of Americans say they either currently or never have turned to a life insurance agent, but they admit they need the coverage. Half of the respondents – the highest amount ever – said they need more life insurance. But economic times have hit hard, and 40 percent say their priority is to pay off their debt or save for retirement.
Those with children know there's threat of catastrophe, and almost half agree if the primary breadwinner were to die today, they would have immediate trouble making ends meet.
Still, many plan to take action. Almost a quarter of those surveyed want to speak to a financial professional about their life insurance needs, and another 25 percent said they will in fact purchase a policy.
Get more: Face it, you're going to need life insurance. Check out our special coverage on life insurance in the September issue of Benefits Selling.
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