(Long Island, N.Y.) The current state of economic affairs is full of challenges for the average household. One of the traditional cornerstones of financial planning has been Life Insurance. However, current trends reveal some disturbing statistics.
The recent surveys were conducted by LIMRA, a life insurance research group. Other current trends note that most American households now depend on two incomes, making life insurance more critical than ever to assure the family’s standard of living in the event of a death. Even in traditional families with stay-at-home mothers; the value of the mother’s contribution to the family is often undervalued, with child care costs alone reaching $30,000 a year or more.
A new survey from the nonprofit LIFE Foundation found that only 2% of adult Americans plan to purchase life insurance within the next 30 days. Survey participants were then asked if that would change if they knew with certainty they only had 30 days to live, and 62% said they would buy life insurance if they could.
(The LIFE Foundation survey was conducted by Kelton Research between Jan. 31 and Feb. 6, 2012, and has a margin of error of 3.1 percent. )
With many Americans having to prioritize expenses to make ends meet, life insurance is secondary to the basic food, shelter, and transportation needs. However, there are ways to make life insurance more affordable.
7 Ways to Save on Life Insurance
What does the future hold?
Insurers are concerned about provisions in Obama’s 2013 budget which would impose new taxes on corporate-owned life insurance (COLI) and insurers’ dividend-received deductions (DRD). Both of these new taxes could significantly raise insurance expenses to business both directly and indirectly. And increased expenses to business are generally passed on to consumers.
In today’s economic climate, it’s highly unlikely that insurance premiums will go down. And insurance costs are always higher as one begins to age. So the single best way to save on life insurance is simple: buy term life insurance.