2 life insurance myths are putting your members at risk

In recent years, an annual life insurance study has shown a sobering percentage of U.S. adults don’t have life insurance. According to the 2020 Insurance Barometer Study conducted by LIMRA in January 2020, that figure was 46%.¹

This stat might come as a bit of a surprise—after all, few families can afford to lose their primary income. So why do so many opt not to buy life insurance?

Two persistent life insurance myths:

Findings from the Insurance Barometer indicate many consumers are unaware of the following:

1.   How affordable life insurance is. Over half of respondents estimated life insurance cost three times more than it actually does and younger consumers overestimated by a factor of five. Half of surveyed Millennials estimated annual policy cost (for $250,000 level-term for a healthy 30-year-old) at $1,000; the actual cost was closer to $160. Even more concerning, cost was a top reason two-thirds of respondents didn’t own life insurance.²

 

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