Insurance Statistics

This may come at quite a big surprise, but many Americans do not have enough life insurance, and some don’t have it at all. The big question, of course, is why, because most life insurance policies are affordable. But many people don’t know enough about insurance to make an informed choice as to what type of life insurance they should by. And the bottom line is that most Americans think they can’t afford life insurance, so they just don’t bother. Here is some insurance statistics when it comes to life insurance, and what you need to know in order to understand how important it is to have.

Agree to DisagreeAbout 85 percent of people agree that most, if not everyone, needs to purchase a life insurance policy, but only 62 percent of people actually have a life insurance policy.

A Steady DeclineOnly 44 percent of households in the United States had an individual life insurance policy in 2010, which was a 50-year low. In 1960, about 72 percent of U.S. citizens had some type of individual life insurance policies, and in 1992, 55 percent of Americans owned a life insurance policy.

Not Enough CoverageApproximately 40 percent of Americans admit to having a life insurance policy in place, but unfortunately they also believe that the coverage they have is not enough.

Trouble If Someone DiedIn this same study, 70 percent of households in the United States that have children under the age of 18 feel they would have trouble being able to meet their everyday living expenses within a few short months if the primary breadwinner in their home were to die. And even more shocking is that only 4 in 10 homes with children on under the age of 18 will have a hard time meeting their everyday living expenses almost immediately after the primary breadwinner dies.

Overestimating the Cost of Life InsuranceThe biggest question that you can ask is why aren’t more people interested in buying more coverage. Many people overestimate the cost of life insurance. For example, about 83% of people say that they don’t purchase any life insurance coverage because they believe it costs too much money, and they believe it costs almost 3 times more than it actually does.

$400 is what many people believe that a 20-year, $250,000 level life insurance policy for a healthy person in their early thirties costs per year. In fact, the actual cost is about $150.

Many people don’t understand what life insurance is, either. They don’t know what it pays, and they don’t understand exactly why it’s important to have a policy in place.

If you are considering life insurance, it’s possible to get a good-paying policy that you can afford. It’s important for you to understand the insurance statistics here, because so many people are mis-informed when it comes to life insurance. If you want to leave you family with peace of mind after you pass way, then you will want to consider purchasing life insurance as soon as you can.

Life insurance will go to pay for things like funeral expenses, and other bills that you leave behind after you die. Without a life insurance policy in place, your family many not even have the money they need to pay the home mortgage and other bills that you may have been responsible for before you passed away. Take the time to fully educate yourself on the importance of insurance, so that you can understand just how very important it is for you to have in place. Then talk to your insurance agent today about buying a policy.

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