Policies cost less than people think and provide more value than they expect.
Half of American families don’t have enough savings to last a year if a primary breadwinner dies, according to the results of a survey fielded by the nonprofit Life Happens and LIMRA, a worldwide research and consulting organization.1 In fact, 43% would feel the impact within 6 months, including nearly 40% of households with an annual income of $100,000 or more.
Even more troubling, just under a third of survey respondents report that their dependents would have trouble making ends meet in less than a month.
Despite this worrisome financial instability, many Americans — more than 100 million, says LIMRA — don’t own any kind of life insurance to protect their loved ones. The number one reason? They think it is too expensive. Yet most consumers overestimate the cost of coverage, with an average guess that is twice as high as the actual price.