The percentage of Americans who have a life insurance policy is falling, according to new research from JD Power. Its study of 2020 life insurance new businesses in the United States found that the decline is largely driven by consumers under 45, many of whom view life insurance as unnecessary, too expensive or too complicated. to buy.
Key points to remember
- The percentage of Americans with a life insurance policy is falling, according to new research from JD Power.
- The drop is largely due to people under the age of 45.
- Many consumers consider life insurance unnecessary, too expensive or too complicated.
Life insurance remains a mystery to many
Depending on the type of policy, life insurance can be expensive and complicated, as survey respondents said. However, term insurance, which is generally the best option for most consumers, is cheap and relatively simple.
Unfortunately, the study found that the workings and benefits of life insurance policies still remain a mystery to consumers, lowering their chances of purchasing one. It can leave individuals and families financially devastated if a loved one dies.
According to the study, life insurance professionals, including agents, advisors and insurers, can help dispel some of the myths about life insurance and highlight the benefits.
Specifically, JD Power recommends that insurance professionals ensure prospects understand coverages and costs, and keep them informed of the status of their insurance application once it has been submitted.
Other JD Power Study Results
Among other findings of the study:
- Only 44% of consumers shop around and compare life insurance quotes from multiple insurers.
- About three-quarters of consumers who purchased a policy said they chose it because it had the lowest price.