According to the 2020,
Insurance Barometer
Study conducted by the Life Insurance and Market Research Association (LIMRA),
about 64% of American households have some form of life insurance coverage. The
study found that term life insurance is the most common type of coverage, with 44
% of households owning a term life policy. Whole life insurance is the second
most common, with 21% of households owning a policy. The study also found that
younger Americans are less likely to have life insurance coverage, with only 49% of households headed by someone under the age of 35 owning a policy. The
study also found that a lack of understanding of life insurance and concerns
about affordability are the primary reasons why many Americans do not have
coverage.
There are several reasons why some Americans
may not have life insurance coverage, despite the financial protection it can
provide for their loved ones. According to the 2020 Insurance Barometer Study
conducted by the Life Insurance and Market Research Association (LIMRA), the
primary reasons why Americans do not have life insurance are a lack of
understanding of the product and concerns about affordability.
Many Americans may not fully understand how life insurance works or the
different types of policies that are available, leading them to underestimate
the value of coverage. Additionally, some Americans may be under the impression
that life insurance is too expensive, or they may not realize that there are
policies available at a variety of price points to fit different budgets.
Despite
these challenges, it is important for Americans to consider the importance of
having life insurance. Life insurance can provide financial protection for
loved ones in the event of the policyholder's death, helping to ensure that
their family is able to maintain their standard of living and meet their
financial obligations. It can also be used to cover end-of-life expenses, such
as funeral and burial costs. Overall, life insurance can provide financial
security and peace of mind for Americans and their families.
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