Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Health Insurance > Life Insurance Strategies

NAIC Finds Widespread Insurance Ignorance

Your article was successfully shared with the contacts you provided.

Many consumers think they know more about insurance than they really do.

Researchers at the National Association of Insurance Commissioners, Kansas City, Mo., have published data supporting that conclusion in a recent summary of results from a telephone survey of 1,000 U.S. adults.

About 56% of the participants said they feel “very confident” about their ability to make insurance decisions, and 90% said they are knowledgeable about their policy coverage.

About 58% understand that health insurance will not protect their ability to pay living expenses if they become too disabled to work.

But only 14% know that experts recommend that a worker should have life insurance with benefits equal to 5 to 7 times the worker’s annual salary, and only 49% know that workers who leave employers and choose COBRA continuation benefits normally must pay 102% of the cost of COBRA coverage, NAIC researchers report.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.