Facts of Life

Life Insurance that is. Facts About Life Insurance from 2010.  These facts are provided by LIMRA.

September is Life Insurance Awareness Month.

LIMRA’s 2010 Life Insurance Ownership Study has found that 30 percent of U.S. households (35 million) have no life insurance protection at all.

• Many U.S. households are underinsured:• Only 44 percent of U.S. households have individual life insurance. This is a 50-year low.
• Half of U.S. households (58 million) say they need more life insurance – the highest level ever.
• Among households with children under 18, arguably having the greatest need for life insurance, 11 million have no life insurance coverage.
• Even affluent households ($100,000+ income) lack sufficient life insurance. One-third say they do not have enough coverage.

The struggling economy creates additional challenges:

• One in four U.S. households rely only on group life insurance to provide financial protection if a wage-earner dies. These households may lose their only life insurance coverage if they become unemployed or have their work hours reduced. In the past year, someone lost their job in 15 percent of U.S. households.
• Decline in owning life insurance has left many households vulnerable if a primary wage-earner died.
• Among households with children under 18, 4 in 10 say they would immediately have trouble meeting everyday living expenses if a primary wage-earner died today.
• Another 3 in 10 would have trouble keeping up with expenses after several months.

Most U.S. Households At Risk:

• Nearly 7 in 10 American households with children under 18 would be in jeopardy if the primary bread-winner died.