ISSUE #37

LIFE INSURANCE STATISTICS

Life Insurance:  Many U.S. families are not prepared for premature death, and many U.S. couples are underinsured.  Changes in types of life insurance coverage contribute to the underinsurance of many Americans.  U.S. parents want more life insurance, but are unlikely to initiate the purchase.  Prospective insureds need proactive contact and help to motivate them to buy life insurance.  Growing ethnic markets have diverse and unmet needs for life insurance. Perhaps now is a good time to review the statistics below and make a strategic personal decision.

LIFE INSURANCE STATISTICS:

• The face amount of individual life insurance has generally increased. The average size policy sold in 2006 was $255,861.
• 22 percent of families with dependent children admit they will have immediate trouble meeting everyday living expenses at the bread-winner's death.
• 26 percent can cover expenses for only a few months if a primary wage earner dies.
• 28 percent of wives have no life insurance.
• 15 percent of husbands have no life insurance.
• 10 percent of families with children under 18 (3.6 million households) have no life insurance protection.
• The average amount of life insurance coverage on insured husbands is $235,600.
• Insured wives average $147,800 of life insurance.
• Insured husbands in the U.S. carry enough life insurance to replace their income for only 4.2 years, and wives for 4.9 years.
• The typical married couple would need to double its current coverage to meet the expert recommendation of having enough life insurance to replace income for 7 to 10 years.
• 56 percent of married parents believe their current life insurance coverage is inadequate.
• Insured adults are more likely to have only group life insurance obtained at work.
• Adults with only group coverage carry the smallest amounts of life insurance.
• Only 19 percent of U.S. adults with individual life insurance supplement their permanent coverage with some term insurance.
• Adults with only permanent policies average $93,700 in coverage, while adults having only term insurance average $190,400.
• Those with both permanent and term coverage average $264,600.
• 56 percent of married couples with children under 18 believe they need additional life insurance.
• 43 percent say they are likely to buy life insurance in the next year.
• 76 percent of parents have no one they rely on for financial advice or information.
• 68 percent do not have a personal life insurance agent.
• Parents find buying life insurance complex and confusing.
• 50 percent of all parents don't know how much insurance to buy.
• 39 percent of all parents worry about making the wrong decision.
• 25 percent of married parents say they haven't bought life insurance because no one has contacted them.
• 40 percent of married parents admit they just "haven't gotten around to it."
• 45 percent of married parents would like to speak with a professional about life insurance products.
• 80 percent of married parents agree that "it would be useful to periodically review the terms, provisions, and options of current life insurance policies."
• 75 percent of married couples with children under 18 buy life insurance to replace lost income and/or to cover burial and final expenses.
• 43 percent of parents want life insurance to pay off the mortgage.
• Compared with the general U.S. population, Hispanic and Chinese American households have significantly lower ownership levels of individual life insurance overall.
• African American and Asian Indian households have somewhat higher levels of ownership.
• Even among insured households, many are underinsured or may have working members who are uninsured.
• The majority have no financial professionals to advise them on appropriate coverage.
• At least one third of individuals from each cultural group said they have no individual life insurance because they are covered by group insurance.

AS ALWAYS, FEEL FREE TO CALL TO DISCUSS THESE OR OTHER ISSUES OF IMPORTANCE TO YOU!

You may wish to access NEW information this month at: www.ashland.edu/estate and “click” on “Planned Giving” in the left hand column.

Our planned giving director, Paul Ditlevson, can be of tremendous service in helping you integrate your giving goals with your overall estate plan. He can also help you prepare to visit your attorney. You can reach Mr. Ditlevson by calling 419-289-5090 or by email to pditlevs@ashland.edu or regular mail at 401 College Avenue, Ashland, OH 44805.