LIMRA: Half of U.S. Households Say They Need More Life Insurance

  • Originally published December 7, 2010 , last updated January 6, 2016
LIMRA: Half of U.S. Households Say They Need More Life Insurance

A recent study by LIMRA found that life insurance needs are higher now than they have been in 50 years.

  • Only 44 percent of households have individual life insurance
  • 30 percent of households (35 million) have no coverage (compared to 22 percent in 2004)
  • Half the households feel they need more life insurance — the highest level ever
  • 24 percent of households with children under 18 want to speak with a financial professional about their life insurance needs
  • One quarter of all households plan to buy life insurance in the next year
  • One third of affluent households (over $100,000 income) say they do not have enough coverage
  • Almost 8 in 10 American households currently do not have a personal life insurance agent or broker to turn to, and most of them say they never did

LIMRA also found the two top reasons why people buy life insurance: 1. To cover burial and final expenses; 2. To replace the income of primary wage earners.

These numbers are both troubling and encouraging at the same time. On the one hand, it seems Americans are not adequately prepared to protect their families and their assets in the event of their eventual passing. On the other hand, these numbers reflect the tremendous opportunity that exists for agents who sell life insurance. Not only do half of households acknowledge they don't have enough life insurance, but a quarter of them said they plan to do something about it within the next year.

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