The gap is growing between what America’s workers are investing in life insurance and what their families will need following a loved one’s passing.
LIMRA estimates that the life insurance coverage gap between life insurance needs and life insurance currently in force has grown to $16 trillion — up from $15 trillion in 2012.
A survey in September by Life Happens found a wide gap between “the values individuals hold, and the actions they take to meet those goals” when it comes to life insurance.
While more than 40 percent of survey respondents said surviving family members would feel the financial impact of their death within months, less than half of them said they would buy life insurance for the benefit of loved ones, according to Life Happens.
“For as little as $3 per week, you can buy a life insurance policy at work and have the premium payroll deducted,” said Pam Jenkins, assistant vice president for product and market development at Colonial Life. “That’s less than the price of lunch.
“Many people turn this relatively simple decision into an overwhelming task, potentially leaving their families without financial security. It’s difficult enough to face the loss of a loved one. Easing the journey by leaving your family with resources to make good decisions for the future is priceless.”
Also from WorkLife:
Life Happens is a 21-year-old nonprofit organization that campaigns to raise consumer awareness about the value of life, disability and long-term care insurance.
LIMRA, a worldwide research, learning and development organization, is the trusted source of industry knowledge for over 850 financial services firms.