Paul Dreher Director of Personal Insurance View Bio

During Life Insurance Awareness Month, we ask: What’s the Value of Life Insurance?

1 in 3 households would have immediate trouble paying living expenses if the primary wage-earner died, according to the 2016 Insurance Barometer Study by Life Happens and LIMRA. And the study also found that 40% haven’t bought life insurance or more of it because they’re unsure of how much or what type to buy. That’s why each September Life Happens coordinates Life Insurance Awareness Month. This industry-wide campaign is aimed at educating Americans about the importance of life insurance and helping them get the coverage they need.

However, Americans continue to see the value in owning life insurance. In fact, six in 10 people own life insurance. And for those who don’t have it, many agree they need it. Here are some facts you may want to consider when discussing life insurance policies for you and your family:

Why People Have Life Insurance

As many as 132 million Americans rely on life insurance to protect their financial security. Major reasons given for owning life insurance include covering burial and other final expenses (51 percent), to help replace lost income (34 percent) and to help pay off the mortgage (26 percent).

More Life Insurance Coverage Needed

However, 30 percent of Americans know they need more life insurance. That boils down to more than 70 million people. Twenty-five percent wish their spouse or partner would purchase some or more life insurance.

Not Many Will Buy

Sixty-five percent of Americans say they won’t buy because they believe it’s too expensive. About two thirds say their mortgage, groceries and their electric bill are keeping them from buying some or more life insurance coverage. Nearly half say additional expenses like Internet, cable and cell phone service prevent them from getting covered.

Americans Worry About Their Retirements — and the Economy

Two-thirds of Americans worry about having enough money for retirement. When asked why, half say they are concerned about the overall economy while forty-four percent said they haven’t saved enough for retirement. These very real concerns can make it difficult to see the important role of life insurance in retirement planning.

People Want to Buy Life Insurance in Person

While 71 percent Americans say they research online, more than half want to work with a financial professional to purchase life insurance. About 1 in 4 consumers say they have bought or have tried to buy life insurance online, with younger consumers more likely to shop online than older people

Many Don’t Know Why It Costs What It Does

Most Americans understand that age and health can affect the cost of their coverage. Far fewer know that their driving record and credit history can also affect the cost.

Many Would Feel Significant Impact at the Loss of Primary Wage-Earner

Half of the households in America would feel the financial impact from the loss of their primary wage earner in a year or less. In fact, over 40 percent would feel the impact within 6 months, including nearly 40 percent of households with an annual income of $100,000 or more.

Financial Priorities: Are They Out of Sync?

This life insurance infographic explains why millenials and gen-xers feel as though they can’t afford life insurance. During life insurance awareness month, it is important to learn how life insurance is affordable and can keep your loved ones from absorbing debt.

Consult with Lawley’s Personal Insurance team to figure out if you’re covered for life.

All facts are from LIMRA’s life insurance consumer studies. LIMRA puts on Life Insurance Awareness Month every September and releases these marketing materials in order to educate the public about the importance of life insurance policies.

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