Life Insurance Misconceptions Remain a Barrier to Getting Individuals the Coverage They Need, says Jordan Goldenberg of St. Louis
In 2020, about 54 percent of all people in the United States were covered by a life insurance policy. For the nearly half of Americans that are not covered, experts may inquire “Why?”. The answer may differ depending on who is asked, and Jordan Goldenberg of St. Louis recognizes that many of them may be linked to common misconceptions regarding coverage. Still, evaluating the reasons why almost half of Americans do not own some type of life insurance is an important process for Employee Benefits Specialists, Goldenberg reasons. This type of research emphasizes the importance of shedding light on comprehensive packages and gives providers the opportunity to break down some of the barriers preventing people from receiving coverage that would truly benefit them. Here, he discusses top reasons for not owning life insurance as listed by a 2020 poll conducted by LIMRA and Life Happens.
“It is too expensive”
Pricing is one of the primary concerns that individuals have regarding life insurance- a point that has been further emphasized by the financial stress many have been under during the pandemic. When we consider life insurance, Jordan Goldenberg acknowledges that we frequently believe it will be supplied at an exorbitant cost. Life insurance is not usually very expensive, however, a fact that particularly rings true for people that are in good health.
In a 2015 Insurance Barometer Study conducted by LIMRA alongside the non-profit organization Life Happens, it was found that two-thirds of millennials and Gen X consumers overestimate the cost of life insurance, deterring them from purchasing coverage that could benefit them. Life insurance premiums can differ depending on a variety of life factors, but the average cost of life insurance in 2021 is $26 a month, putting the yearly cost at as much as a thousand dollars below some estimates.
“I don’t feel I need any”
Another one of the top reasons Americans have for not owning life insurance is that they do not believe they need any. Jordan Goldenberg of St. Louis believes that there are some sound points made. After all, some people that purchase life insurance will not have the misfortune of needing to utilize the package for their beneficiaries. Still, it begs the question- if your family were put in a hard financial position because of your passing, would you still feel as though the coverage was not needed? We own insurances of all types because it is a layer of protection if it needs to be used. One of the many things that we learned in 2020 is that it can be difficult to rectify things if we did not already have a policy that covers the situation at hand. The irony of insurance of any type is that we do not need it until we do.
“I am unsure of how much/ what type to buy”
Some Americans are certain that they could use life insurance. The issue, instead, is that they are not well educated on the topic to decide on the type or amount of coverage they need. Jordan Goldenberg of St. Louis acknowledges that this can weigh heavy on an individual, but it does not need to. There are several simple ways that a busy person can evaluate their need for insurance. One effective method is to explore the options that may already be provided by your employer. Depending on your employer’s plan, it could be possible to secure lower rates or more benefits. If this is not a possibility, some may consider a quick conversation with a benefit’s specialist. Having some of the ins and outs of insurance offerings explained by a professional can be an excellent way to expand one’s knowledge on the space. This can be beneficial even if it leads to the decision to hold off on insurance or shop around to see what is offered elsewhere.
