6 ID Trends NAILBA
Why consumers buy / don ’ t buy life insurance :
Top reasons consumers buy life insurance |
|
Top reasons consumers don ’ t buy life insurance |
|
Cover burial and final expenses |
83 %
|
It is too expensive |
60 %
|
Help replace lost income of wage earner |
68 %
|
Have other financial priorities |
55 %
|
Transfer wealth or leave an inheritance |
63 %
|
Unsure how much or what type |
53 %
|
Lack of knowledge about life insurance contributes to the coverage gap :
Just
say they are very or extremely knowledgeable about life insurance .
Prior research shows consumers with higher knowledge are
31
% of Americans
30
% more likely
to have adequate life insurance coverage .
53 % 60 %
The top reason people give for
A third of consumers believe they would have to pay taxes on a life insurance death benefit and 4 in 10 aren ’ t sure . The reality is the proceeds from a life insurance death benefit are not taxed .
Of Americans say they haven ’ t purchased ( or purchased more ) life insurance because they are unsure how much they need or what type to buy .
30 % not purchasing coverage is that it is too expensive . Yet more than half of Americans overestimate the cost of life insurance three-fold .
About of consumers view life insurance only for burial and final expenses . This perception of life insurance could result in not purchasing enough coverage to provide income replacement or enable wealth transfer — two key ways life insurance can benefit loved ones after a wage earner dies .