Life Insurance: Employer Programs Can Eliminate Dangerous Gap

Recent research from LIMRA reveals that most Americans lack adequate life insurance. Employer programs can help fill that gap.

According to LIMRA, with disposable income at an all-time low, American families have to make difficult decisions on what financial priorities take precedence. Unfortunately, life insurance is not at the top of the list. Consider the following statistics:

  • Thirty percent of U.S. households have no life insurance at all; only 44 percent have individual life insurance.
  • Fifty percent of U.S. households (58 million) say they need more life insurance.
  • Among consumers who believe they need life insurance, 86 percent haven’t bought it because they think it is too expensive.
  • The average amount of coverage for U.S. adults has declined to $167,000, down $30,000 from the average amount in 2004.
  • Although 4 in 10 households with children under 18 now include a mother who is either the sole or primary earner for her family, women who have life insurance have only 69 percent of the average coverage amount that men have.

About 2 in 10 households say they would prefer to buy life insurance through the workplace in the future. They say this because they:

  • View it as an easy and convenient way to buy (33 percent).
  • Believe it will cost less or be a better value (26 percent).
  • Trust their employers (20 percent),
  • Like the ability to have premiums deducted from their paychecks (13 percent).

If you’d like to add life insurance to your benefits package or enhance the coverage you already offer with a voluntary plan, contact the experts at USI for more information on this low-cost, high-return benefit.

Source: LIMRA’s 2013 Facts of Life,

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