Life Insurance Awareness Month

October 19, 2013

Employee Benefit & HR News

October is Life Insurance Awareness Month. This is an excellent opportunity to look at the challenges we all face when addressing our family estate planning needs. LIMRA, the Life Insurance Market Research Association, recently performed a national survey of households and they’re reporting some discouraging post-Great Recession statistics. Among their discoveries;

  • 30% of US Households have no life insurance at all. Only 44 percent have individual life insurance.
  • 50% of US Households acknowledge the need for more life insurance.
  • The average life insurance benefit is $167,000. This is down from nearly $200,000 prior to the Great Recession.
  • 35% of those queried for LIMRA’s research report that they’ve not yet bought more life insurance because their advisors haven’t approached them to discuss.
  • Among women who are the sole or primary earner for their family and have kids under 18 in the household, their life insurance portfolio is only 69% of the value of the average of men that were surveyed.
  • There are eleven million fewer households covered by life insurance than 7 years ago.

In LIMRA’s survey, they found that the everyday pressures of a tough economy are competing with our ability to plan and provide for our life insurance needs. Research results revealed;

  • “Everyday expenses” such as energy costs, food, clothing and transportation were cited by more than half of consumers surveyed as limits on ability to save for financial goals.
  • When surveyed on financial issues, “money for a comfortable retirement” was the top pick of 67 percent of consumers. By contrast, concerns that life insurance coverage traditionally addresses (such as premature death, funeral expenses and leaving an inheritance) registered as a top priority for less than 40% of those surveyed.
  • Middle-income consumers are more concerned with reducing debt and having more money for retirement than other income groups surveyed.

These survey results should serve as a reminder that everyone should review their life insurance coverage and reach out to their experts. This is far too important to continue to leave on a “to-do” list. Start here to analyze your personal needs: http://www.lifehappens.org/life-insurance-needs-calculator/. If you find you have questions or need additional resources, please contact your JW Terrill consultant or Kevin J Guss, our Private Client Benefits Consultant.

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About Kevin Guss

Kevin J. Guss is a Consultant with our Private Client Benefit Services, specializing in providing individual health coverage (on and off-exchange), Medicare supplements, life, LTC and disability insurance to clients of J.W. Terrill and strategic partners. With more than 22 years of industry experience, Kevin counts many retired professional athletes, celebrities, business leaders and prominent members of the community among his clients. He has a Group Benefits Associate designation from the Wharton School of the University of Pennsylvania, a Past President of St Louis Association of Health Underwriters and a current board member of the MO Association of Health Underwriters.

View all posts by Kevin Guss

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