This article is also available as a print-friendly PDF handout. Click here!
By Terri Getman, JD*, CLU, ChFC, RICP, AEP (Distinguished)
Situation: According to LIMRA’s 2016 “Trends in Life Insurance Ownership” study, 30 percent of U.S. households are uninsured. This is equal to the record low set in 2010. This bleak finding is especially disturbing when you consider that across all age groups under 65, there has been a significant decline in the income replacement ratio. In 2010, insured households had coverage to replace income for 3.5 years. Today, that figure is 3 years. In fact, 7 in 10 of all households said they would have trouble covering everyday living expenses after several months. Bottom line: LIMRA estimates the total market coverage gap to be $12 trillion.
If there is a silver lining to these dismal statistics, it is that according to LIMRA, approximately 50 million households recognize that they need more life insurance. So why don’t they buy?
One obstacle is that advisors are not talking about life insurance.