For the final decade, Life Occurs and LIMRA have come collectively to know the “monetary pulse” of customers as a part of the annual Insurance coverage Barometer Research. This yr’s research opinions 10 years of shopper knowledge on life insurance coverage and associated monetary points, offering a perspective from January 2020, earlier than COVID-19 considerably impacted the U.S.
Life insurance coverage acts as an important protecting blanket for family members when the surprising occurs. However for a lot of, this realization comes too late.
The Insurance coverage Possession Hole
Earlier than the pandemic, near half (46%) of U.S. grownup customers didn’t personal life insurance coverage. Whereas 36% of respondents mentioned they supposed to buy life insurance coverage within the subsequent 12 months, many have been with out it through the top of COVID-19 within the U.S. Lack of possession could also be including to mounting monetary stress People are going through. Virtually half (44%) of these surveyed state that they’d really feel a monetary affect inside six months if the first wage earner have been to go away. Greater than 1 / 4 (28%) would really feel it inside one month. This doesn’t must turn out to be a actuality, however as extra customers delay taking motion they’re placing their family members in danger.
Possession of life insurance coverage this yr fell amongst households within the decrease and middle-income classes (i.e., below $100,000), declining by 25% over the previous 10 years. For individuals who do personal life insurance coverage, the highest causes are:
