The pandemic has shown many Americans the importance of protecting ourselves and our families from the unexpected. COVID-19 increased life insurance awareness across the board, with 36% of Americans planning to buy a policy this year. For all Millennials, 48% are now planning to get covered.
This newfound demand and growth in protected families is encouraging, but the industry still has a lot of awareness to spread if the goal is financial security for all people. This year exposed the startling statistic that 42% of families would face financial hardship in only six months if a wage earner died unexpectedly. Life insurance remains as important as ever in creating generational wealth and bringing peace of mind.
"42% of families would face financial hardship in only six months if a wage earner died unexpectedly."
Even with a Rise in Demand, Misconceptions are the Norm
While life insurance policies had a large spike last year, with term life insurance experiencing the largest purchasing increase, many people — particularly young people — are still daunted by purchasing a policy due to simple misconceptions. For example, 44% of Millennial consumers overestimate the cost of a policy, believing it could cost them up to $1,000 per year. This is six times the average premium of $160 per year for a 30-year-old buying a policy.
While this lack of knowledge about life insurance has long been the norm, there is hope that it is dwindling. More and more people are learning about the importance of coverage every day, and life insurance companies are doing their part to meet this need. Last year, the industry adapted quickly with measures like social distancing, virtual consultations and adjusting underwriting standards to cover more families in a year of crisis. Insurance companies have maintained an impressive momentum by doing everything in their power to safely serve the rise in new consumers.
"More and more people are learning about the importance of coverage every day, and life insurance companies are doing their part to meet this need."
Getting Covered is More Simple than You Think
A life insurance policy can do two things at once: it can protect your family when you are gone and make your life easier while you are alive. Life insurance can be difficult to discuss because it involves facing death, but having that difficult conversation is worth it to give your family the financial security and peace of mind necessary to enjoy all that life has to offer. Use this month to find yourself a policy or discuss the importance of life insurance with loved ones. For more information on how to get covered, you can connect with a First Financial Security agent.