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Affordable Life Insurance

U.S. households hold an individual life insurance policy — a figure that represents a 50-year low, a new study by LIMRA shows. Today, 30% of households — or 35 million — have no coverage, up from 22% of households in 2004, LIMRA said. At a time when finances are tense and the job market and the economy are struggling, “having the defense of affordable life insurance is more essential than ever,” said Catherine Theroux, a spokeswoman for the Windsor, Conn.-based LIMRA.
The study originate that four in 10 U.S. households with children would have difficulty paying bills if the main breadwinner died today. Most American families have less money to rely upon as a financial cushion than before the economic slump began in 2008, LIMRA noted. More than 40% of Americans said a major reason they have not bought more life insurance is because they have other financial priorities right now, such as paying off debt or saving for retirement, Theroux said.
Among households with children younger than 18, 11 million have no life insurance, the research organization found. A bulk of families either have no life insurance or not enough, leaving them one accident or terminal sickness away from a financial catastrophe for their loved ones, said Robert Kerzner, president and chief executive officer of LIMRA, LOMA and LL Global, in a statement. Word life is one of the most popular products for young families and the middle-income market, Theroux said. Total second-quarter U.S. sales of individual life insurance — calculated in new annualized premium — rose 7% from the same period in 2009, marking the second straight quarter in which sales increased from the prior year, according to LIMRA.
Word life, however, was the only product whose premium didn’t increase year over year. New annualized premium declined 11% and was down 7% year-to-date. According to a new column by executives at Swiss Re Life & Health America, after 15 years of sharp price declines, word insurance premiums began to rise in 2009. Through August 2009, the premium for a $500,000 policy for a 35-year-old man with a rate guaranteed for 20 years rose 5% on average, and the premium for a policy with a 10-year guarantee was up 6%.
Several leading companies raised word insurance premiums by as much 10% to 15% last year, and others have stopped writing long-term business.

This entry was posted on Thursday, December 9th, 2010 at 7:33 am and is filed under Florida Life Insurance, Life Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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