LIFE INSURANCE
An enduring need :
Why Life Insurance coverage is more important than ever
54 %
Just 54 percent of Americans have any life insurance coverage , a notable decline from 63 percent just a decade ago . Even among those who do , 6 in 10 say it would cover less than six months of expenses .
As we begin 2021 , the COVID-19 pandemic continues to take an unimaginable toll across America and around the world . Fortunately , there is hope for the situation to improve , as the vaccine becomes more widely available . Yet this does not reverse the tragic effects that have already occurred , as hundreds of thousands have lost their lives to the virus in our nation alone .
The pandemic has certainly heightened people ’ s anxieties around their physical , emotional , and financial health . Families cannot help but worry about what they would do should they be impacted by sudden loss . This presents our industry with both an opportunity and a responsibility to help more individuals , households , and businesses secure the financial protection they need .
Real consequences
When LIMRA and Life Happens asked consumers how long it would be for their family to face financial hardship if the primary wage earner were to die prematurely , the results were sobering . Nearly half of households ( 44 percent ) said they would face financial hardship within 6 months . For 28 percent of households , it would be within just one month ( Figure 1 ).
Figure 1 : Time to financial hardship from loss of wage earner
One week
One month
Six months
11 %
16 %
17 %
44 % of American households would face financial hardship within 6 months with the loss of a wage earner .
David Levenson President and Chief Executive Officer , LIMRA , LOMA , and LL Global , Inc .
One to two years
17 %
* Life Insurance in Life Stages , LIMRA , 2020 .
Five or more years
9 %
Don ’ t know
17 %
Not applicable
14 %
Life Insurance continued on page 38
36 Perspectives Q1 2021