LIMRA: Life Insurance Ownership Hits 50-Year Low

  • Originally published September 2, 2010 , last updated October 13, 2015

LIMRA's trends in life insurance ownership study found some disappointing results this year.

According to the study, which is conducted every six years, only 44% of U.S. households have individual life insurance. The number of households that don't have any life insurance is 30%, which equals 35 million families across the United States.

That's a significant increase since 2004 when only 22% of families had no life insurance. This despite the fact that LIMRA, in a separate study, reported strong growth in new business in the first half of 2010.

So Why Is Life Insurance Ownership Decreasing?

  • Families are living on the edge more these days, living paycheck to paycheck
  • Families are facing other financial priorities at this time (40% of American Families believe this)
  • Many people had life insurance though their employers, but lost it when they were laid off

This survey found that families know they need life insurance but don't know where to turn for help to get a policy that can fit their budget. Marvin H. Feldman, CLU, ChFC, president and CEO of the LIFE Foundation stated, "With so many families continuing to struggle financially, there has never been a more critical time for people seek help from their insurance agents and get an adequate amount of life insurance."

The time is now to help your clients find an amount of life insurance that can safely protect their family in a time of need. Subscribe to the SMS eNewsletter for product breakdowns and sales tips that will help you know more and sell more.