Despite basic awareness, life insurance gaps still plague Americans
A new study by Corebridge Financial reveals that while many Americans possess a basic understanding of life insurance, that still leaves a lot of room for client education and awareness-building.
According to the research findings released Wednesday, which draws on a survey of 2,204 adults conducted in June, 80 percent of Americans are aware that purchasing life insurance is most cost-effective when they are young and healthy.
Still, perceived cost remains a major barrier, with nearly half (45 percent) of those without coverage citing expense as the primary reason for not purchasing a policy.
“Life insurance is a cornerstone for a secure financial plan, but misperceptions around cost deter too many people from making this important protection a part of their overall strategy,” Tim Heslin, president of life insurance at Corebridge Financial, said in a statement.
The research revealed an epidemic level of ignorance around the actual cost of life insurance. Only 11 percent of respondents accurately identified the monthly cost for a healthy 30-year-old to secure a 20-year, $250,000 term life insurance policy, which typically costs around $15 per month. Misconceptions about the price were common, with 16 percent of respondents expecting the cost to be more than triple the actual amount, and another 16 percent anticipating it to be more than double.
The survey also found a concerning level of uncertainty as nearly 60 percent of US adults either do not have coverage or are unsure if they do. There was also a significant gap in life insurance coverage, with 50 percent of respondents lacking a policy and an additional 9 percent unsure if they’re covered.
Tellingly, the likelihood of having life insurance appears to be
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