Americans are no longer finding reasons to avoid purchasing life insurance. The 2021 Insurance Barometer Study indicates that those without coverage desire more convenience in the process, stating they haven’t been approached about it (46%), it’s not offered through their employer (42%), or they simply haven’t taken the time to do it (62%).
Despite the challenges posed by the COVID-19 pandemic, securing life insurance has become more straightforward. This means that individuals, especially the 31% considering buying life insurance due to the pandemic and the 47% who have yet to do so, should not delay in obtaining coverage.
Furthermore, our data reveals that people do not regret buying life insurance; in fact, they regret not purchasing it sooner. 39% of those with life insurance wish they had bought it at a younger age.
These insights are from the 11th edition of the annual Insurance Barometer Study by LIMRA and Life Happens, focusing on the financial attitudes and behaviors of Americans, particularly in relation to life insurance.
Interest in life insurance is currently at a peak, with over half (59%) of non-owners recognizing the need for it. The top reasons for not having life insurance include cost (81%), other financial priorities (75%), uncertainty about coverage needs (65%), procrastination (62%), and aversion to thinking about death (51%).
The study dispels myths about the affordability and accessibility of life insurance. Despite perceived obstacles, the pandemic has prompted some individuals, especially Millennials and Black Americans, to purchase life insurance for the first time.
Men tend to believe common myths about life insurance more than women, such as assuming employer coverage is sufficient. Women also express less knowledge about life insurance compared to men. The pandemic has shifted financial priorities, with more people recognizing the importance of adequate life insurance coverage.
The study also highlights changes in reasons for owning life insurance, with burial expenses decreasing in popularity while retirement income supplementation and wealth transfer/inheritance have become more prominent motivations.
For more insights from the 2021 Insurance Barometer Study, click here.
The study conducted by LIMRA and Life Happens in January 2021 surveyed over 3,000 adult consumers who are financial decision-makers in their households. The results were weighted to reflect the U.S. population.
