For the fifth year, Life Happens partnered with LIMRA to produce the Insurance Barometer Study, which looks at consumer trends and consumers’ perceptions regarding life insurance, retirement and their financial well-being.
Among the findings, cost is the reason most Americans give for not owning life insurance, yet 80% of consumers misjudge the price for term life insurance, with Millennials overestimating the cost by 213%, and Gen Xers overestimating the cost by 119%.
“We’ve consistently seen over the last five years that consumers think life insurance is more expensive than it really is,” says Marvin Feldman, CLU, ChFC, RFC, President and CEO of Life Happens. “We need to help educate the public about how affordable life insurance can be.”
The study also found that nearly one-third (30%) of Americans believe they need more life insurance and more than 2 in 5 (43%) say they would feel a financial impact within 6 months if the primary wage-earner died. However, the majority of Americans (54%) say it is unlikely they will purchase life insurance within the next 12 months.
In addition, most Americans continue to put other financial priorities ahead of purchasing life insurance:
- 29% of Millennials cited saving for vacation
- 23% Gen Xers said paying for recreational activities such as going out to eat, movies or shopping
- 49% of those 65 and older cited paying for expenses such as Internet, cable and cell phones
Click below to download the full study and accompanying infographics, or if you’d like a copy of the press release announcing the 2015 Insurance Barometer findings click here.