About one-third of American families do not have life insurance and many families that do have it are vastly underinsured. In fact, life insurance ownership is at a 50-year low. What’s causing this lack of coverage? The Life Insurance and Market Research Association (LIMRA) conducted a study and found that most Americans simply don’t understand life insurance.
4,000 people were given an exam containing ten questions about life insurance and only 1,200 people passed. The majority of participants answered fewer than five questions correctly. And out of the people who performed well, less than one percent answered all ten questions correctly.
These numbers may seem shocking until you hear the reasoning behind it. The top reason for people not buying life insurance is because the topic is too confusing. When you think about the plethora of information—television ads, internet ads and even stories from friends and neighbors—it’s no wonder people can’t get the facts straight.
However, the study found that the people who better understood the topic garnered their knowledge from several sources, including work, seminars and financial planners. Many of these individuals were older, well-educated people who viewed life insurance as an important and valuable coverage.
Whatever your circumstances, it’s never too late to learn more about how life insurance can protect your family when you no longer can. Call your independent insurance agent for details on policies and pricing.
We’ll help you get started. Call McDonald Insurance Group for more information on life insurance.