Thursday, May 31, 2012
Reports and surveys indicate that many consumers believe that the cost of insurance is higher than its actual cost. This number is in some ways related to number of people who believe that they do not own an adequate amount of life insurance. About a third of the consumers surveyed in the 2012 Insurance Barometer Study thought that they did not have an adequate amount of life insurance. The reason that most people do not have more life insurance is because they claim that it is too expensive. The groups that are most affected by this are minorities, women, and young adults.
Another reason that most people do not obtain more life insurance is that have other financial concerns that take priority over purchasing life insurance. With the financial troubles of the day, at least half of all consumers surveys stated that they were more concerned with having funds for their retirement than they are with having enough life insurance.
See Consumers Overestimate Cost of Life Insurance By Nearly Three Times, MarketWatch: Wall Street Journal, Apr. 25, 2012.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.