There are many misconceptions and myths around life insurance, but the importance of the coverage remains truer than ever. Let’s take a look at some insightful statistics on life insurance to help you better under the solutions coverage can help provide.
According to Life Happens, a nonprofit organization dedicated to educating Americans about life insurance, 66% of adults know they need life insurance yet only 57% have a policy.
Top reasons to buy life insurance
- To help replace lost income of the primary wage earner (37%)
- To cover burial and other final expenses (30%)
- To transfer wealth or leave an inheritance (28%)
- To help pay off the mortgage (27%)
- To help with business purposes (21%)
2019 Life Insurance Study Key Findings
- 47% are “somewhat” or “much” more likely to buy life insurance with a simplified underwriting approach.
- Of the 250 million U.S. adults, 85 million use social media to learn more about financial advisors.
- About two-thirds of those using social media for finance-related topics are looking for information on products and services (62%) or reviews on financial professionals (61%).
- When asked to identify the most valuable types of information from social media, 39% of consumers want a hint that explains how to save money and 38% want comments and referrals from other people.
- 78% of consumers were “slightly” to “extremely” likely to purchase combination life products.
- The top reason people buy a combination life product is anxiety over long-term care expenses potentially depleting their savings.
- The top reason people do not buy a combination life product is because it’s too expensive.
- Market penetration for life insurance is 57% for Americans.
- The study shows product knowledge is a more significant barrier to ownership than perceived to be. This suggests reducing knowledge gaps may reduce ownership gaps.
2019 Insurance Barometer Study, Life Happens and LIMRA
Categories: Insurance, Life Insurance, Term Life Insurance, Whole Life Insurance