Most Americans don’t have enough life insurance. Many Americans have no life insurance at all. Why? According to research, the most common reason given is that they have competing financial priorities. The second most common reason? They think they can’t afford it.
Here, we take a look at the shocking numbers behind the coverage gap in America and some of the misconceptions that might be causing it to persist.
85 percent of consumers agree that most people need life insurance, yet just 62 percent say they have it.
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Source: LIMRA’s Life Insurance Barometer Study 2013
44 percent of U.S. households had individual life insurance as of 2010 — a 50-year low. In 1960, 72 percent of Americans owned individual life insurance. In 1992, 55 percent owned it.
Source: LIMRA’s Trends in Life Insurance Ownership study
40 percent of Americans who have life insurance coverage don’t think they have enough.
Source: Genworth LifeJacket Study 2011
70 percent of U.S. households with children under 18 would have trouble meeting everyday living expenses within a few months if a primary wage earner were to die today. 4 in 10 households with children under 18 say they would immediately have trouble meeting everyday living expenses.