life insurance

Why Most American Adults Lack Adequate Life Insurance

December 27, 2023

Life insurance is a crucial part of thoughtful financial planning. It offers financial support for your end-of-life expenses, helps settle debts, and ensures your family's well-being. However, a significant number of adults in the United States don't have enough coverage, according to one LIMRA study. This lack of insurance puts many families at risk of facing financial struggles if a loved one were to pass away.

The State of Life Insurance in America

Younger generations of Americans are more likely to have little or no coverage. It’s estimated that 52% of all adults currently have life insurance, although that number drops to 48% for millennials and 40% for Gen Z. Of all adults, 41% believe they have insufficient coverage for their needs.

These figures show a worrisome trend, even though most adults state they need to obtain or increase their coverage. Some of the reasons for the lack of adequate life insurance are:

  • Misconceptions
  • Affordability concerns
  • Lack of awareness about coverage needs

Too many adults believe they only require life insurance if they have dependents, or it can wait until they are older. Others mistakenly think that a group policy they have through work provides enough coverage, or they don’t believe they can afford premium payments. However, life insurance comes in several types, with policies customizable for nearly any need.

The Consequences of Underinsurance

If you die while underinsured, your loved ones might struggle to cover the costs of your burial along with any debts you have. They may also need help paying for essentials like the mortgage, education, and daily living expenses.

Obtaining insurance is a smart investment that tremendously impacts long-term financial planning and security for you and your loved ones. Familiarize yourself with the advantages of purchasing a policy with this fact sheet to learn why staying underinsured is a risk you can’t afford.

Solutions and Strategies for Closing the Coverage Gap

Life insurance is quite affordable, and the benefits of coverage outweigh the negligible cost. Obtaining an insurance policy that fits your budget and provides the coverage you need is possible with the option to tailor a policy to your circumstances. Whether you want a term or lifelong insurance, getting the right policy for you has never been simpler or more accessible.

Don’t wait to explore your insurance options. And remember, once you purchase life insurance, review and adjust your policy as needed to reflect changes in your family and financial situation.

Peace of Mind

Don’t let misinformation regarding how life insurance works, who it’s for, or the costs stop you from obtaining coverage. Everyone needs a life insurance policy to provide themselves and their families with financial security and peace of mind.

It’s easy to estimate the coverage you need with a simple online calculator. If you have questions about which kind is best for your needs, speak with a representative at 1891 Financial Life for advice and guidance. Contact us today to discuss your life insurance needs and allow us to assess your situation and recommend products that fit your needs.

About 1891 Financial Life

At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.

Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.