U.S. Households Without Life Insurance Reaches 50-Year High

August 29th, 2010 | by Sofia Annois |

New data from industry-funded research firm Limra has revealed that nearly a third of U.S. households have no life insurance coverage. According to the firm, this is the highest percentage of households going without insurance in five decades.

Millions Are Uninsured

The report found that about 35 million (about 30 percent) U.S. households are without both their own life insurance policies and a policy covered under their employer-sponsored plans. This number is up from 24 million (or 22 percent of households) in 2004.

With only slightly over two-thirds of households having coverage, the percentage is a considerable drop from the over 80 percent of households that held coverage in 1960. It is, in fact, the lowest figure seen by the firm since the same year when the firm began keeping records.

Why So Many Go Without Coverage

Limra determined the high percentage of households without life insurance coverage has a lot to do with the financial pressures resting on the shoulders of the middle class. With the recession having the hardest impact on middle class workers, many who found themselves unemployed could no longer qualify for coverage from employers or simply could not afford coverage on their own.

Of those who responded to the survey, half said that they needed more life insurance but haven’t bought it due to financial difficulties that would be made worse with the extra expense. Are you in this position?

Acquire Affordable Life Insurance

If you find yourself in the position of needing life insurance but are unable to purchase it, it’s good to consider a term life insurance policy. It allows you to pay less because you’ll be covered for a shorter amount of time. This is one of the best low cost life insurance options available for those who need quick coverage at an affordable price.

However, it’s important you don’t go with the first company that’s offering a good deal because there may be an even better one right around the corner. Instead, before committing to anything, shop around for the best deal. This way, you increase your chances of protecting your family without depleting your finances.

My Insurance Super Market