Recent research has shown that the struggling economy is holding many back from coverage.
According to a recent study, millions of middle aged Americans are choosing not to obtain life insurance as a result of the shaky economy in the country that is creating a lack of stability in their own personal financial situations.
Research has indicated that the average American’s savings is sitting at a mere $3,000.
Beyond the lack of savings, the economic uncertainty has indicated that an even larger number of people are finding themselves in a riskier financial position. The results of a New York Life survey were recently released and determined that among people born between the years of 1965 and 1976, people reported that they had life insurance needs that were nearly $449,000 more than what they were currently receiving from their coverage.
The survey showed that 20 percent of people in Generation X had no life insurance coverage at all.
In 2008, the same age group reported only 15 percent as having no life insurance. Without any life insurance coverage, the risk profile of that generation is on the rise, leaving them exposed in the event of an unexpected death. As a result of the shakiness of the American economy, there is a greater tendency toward risk taking among everyone in the United States, as an attempt to try to save some money. Other areas where risks are being taken include a lack of auto and health plans.
Families are also underestimating their expectations of the amount of life insurance that they need, as they have a tendency to place their focus on the payment of immediate bills, such as their rent, mortgage payments, utilities, and cell phones.
According to USA Today’s Matt Krantz, “Life insurance ranks at the top of the list of things consumers know they probably should buy, but get no personal enjoyment from whatsoever.” He added that when thinking about the coverage, there is no happy angle for it. Within the best possible case, for a policyholder, coverage is simply another bill that needs to be paid. At the worst case, the policyholder has died and the family collects the benefits.