A study released Tuesday by LIMRA found that among underinsured U.S. households, 17 million, or half of them, may be ready to buy life insurance policies in the next year.
For the report, “Trillion Dollar Baby Growing Up,” LIMRA calculated the number of households that admit they are underinsured, and the number that think they might buy insurance in the next 12 months. The agency measured the gap between the amount those people said most consumers should own, and the amount they themselves own.
“The greatest challenge is not getting them to understand they need life insurance, but rather getting them to give it a high enough priority to investigate coverage now,” Cheryl Retzloff, senior research director, LIMRA Markets Research, said in a statement. “These consumers need help to decide what type to buy, how much coverage they need and how life insurance can play an important role in their overall financial security.”
In 2004, LIMRA estimated that life insurance sales would increase by $9.5 trillion if the then-48 million uninsured households bought the coverage they said they needed.
Opportunities have doubled since then, according to LIMRA, as 58 million households said they needed more coverage in 2010, representing a sales potential of $17.5 trillion.