September is Life Insurance Awareness Month … whoa, wait; stop. Stay with me.
In addition to National Yoga Month, September is Life Insurance Awareness Month, sponsored by The Life and Health Insurance Foundation for Education (LIFE), a nonprofit organization dedicated to raising awareness of the need for life insurance.
By all accounts, they’ve got their work cut out for them. Despite premiums that are generally lower than a decade ago, LIMRA reported that in 2010, the number of Americans with life insurance coverage hit a 50-year low. Things haven’t gotten much better since. LIMRA now finds three in 10 American households (35 million) are uninsured and half say they need more life insurance.
The top two reasons people don’t buy life insurance are competing financial priorities, and they think they can’t afford it. The latter is especially interesting. In April, LIFE and LIMRA released “The 2012 Insurance Barometer Study,” which asked respondents to estimate the annual cost of a 20-year, $250,000 level-term life policy for a healthy 30-year-old consumer. Respondents estimated the policy would run them about $400 per year, but the report put the cost at around $150.