Study: 37% of American Adults Skip Life Insurance
— The Most Commonly Cited Reason? Cost. But Data Reveals That Even If Money Weren’t an Issue, Many Still Wouldn’t Pay —
AUSTIN, TEXAS (June 21, 2017)—A recent survey from insuranceQuotes.com finds that 37% of adults do not have life insurance. And while expense was the most commonly cited reason for not purchasing a policy—with 59% of those without a policy saying so—data revealed that respondents still wouldn’t do so, even if money weren’t an issue. But why?
“Many adults, particularly millennials, believe that since they’re currently healthy, they do not need life insurance. But rather than being viewed as an expense, life insurance should be viewed as an investment as well as a safeguard, for your spouse and children,” said Laura Adams, senior insurance analyst at insuranceQuotes. “There are many affordable policies out there, and unlike other insurance types, life insurance covers losses from an event that is inevitable.”
The study found that most non-policy holders:
- Largely belong to the millennial generation: 65% in the 18-29 age bracket do not have life insurance policies compared with 29% in the 30-49 age bracket and 26% in the 50-64 bracket
- Are single: 23% of those with life insurance policies are single, while 75% are married
- Have less formal education: Only 26% of those without policies are college graduates
- Make less money: Of households with an annual income of $75,000 or more, 78% have life insurance policies; of those with an income $50,000 to $75,000, 74% have life insurance policies
Those who don’t have a policy say they’d spend extra income on the following before buying affordable life insurance: Purchase food/utilities (76%); Put money in savings (71%); Pay down debt such as car loan or student loan (67%); Donate to a charity (49%).
“The longer you wait to get life insurance, the more expensive policies become—so I always recommend to young adults that they do their best to get a jump start. When determining a policy, top factors to consider include your own personal health, loved ones, family history, retirement and estate taxes.
“Also worth considering, especially for consumers concerned about cost, are policies that convert life insurance into an income annuity, supplementing your retirement savings,” added Adams.
The full report—which includes additional data, tips and insights—is available here.
insuranceQuotes and Princeton Survey Research Associates International conducted an online survey of 1,001 U.S. adults aged 18 and older in May of 2017.