LIFE INSURANCE FACT

By
Services for Real Estate Pros with OneAmerica - Seminole, FL

    Every September, Financial Professionals focus on talking to consumers about their need for life insurance; we celebrate Life Insurance Awareness Month, or LIAM. LIAM was created by the non-profit organization, LIFE FOUNDATION in response to growing concerns about the numerous residents of the United States, who lacked life insurance protection.

     As we approach the mid-way point through our month-long celebration, I thought that I would share some statistics with you:

    28% of wives, and 15% of husbands have no life insurance at all.

     1 of every 4 married parents haven't purchased life insurance because no on has contacted them. 43% of married couples with children say that they are likely to purchase life insurance next year..

    22% of families with children admit that they will have immediate trouble with everyday living expenses. Husbands carry enough coverage for a little more than 4 years.   

    The average life policy on a husband is $235, 600; just under $150,000 for wives.

    56% of married people feel that they have adequate coverage.

   40% of married parents would like to discuss speak to a professional about the various life products. Most parents have no trusted adviser.

    Insured adults are more likely to to group insurance at work; they carry the smallest amounts of life insurance coverage.

   Over the  20 or so years, the life insurance industry has seen annual declines. The only increase of new policies sold was shortly after September 11. What does this mean?  The facts are clear that American want professional help with their life insurance needs, but don't get it, or afraid to ask. 

   YOU CAN HELP!  When meeting with a prospective buyer or seller, recommend that they owe it to themselves to sit down with a professional to discuss their need. Recommend your advisor. I would hate to see that person lose their home if a wage earner than they depend on suddenly wasn't there.     

  .

Comments (5)

Donald Apelian "Short Sale Specialist"
Meridian Financial / First American Financial - Saint Petersburg, FL

Tony - are you trying to embarrass me into buying more coverage?

Sep 18, 2008 06:17 AM
Tony Wangrycht
OneAmerica - Seminole, FL - Seminole, FL

Don, everyone can use more life insurance. Statistics show us that most Americans are under insured. Just imagine the guy that you just happened to help finance his home. On your loan application, there is a place for assets such as life insurance. Based on that, knowing if he has dependents or not, you can recommend him to someone like me for an insurance review. Based on numbers, I can almost guarantee that he is under insured.

Sep 19, 2008 03:09 AM
Shirley Parks
Sands Realty 210-414-0966 - San Antonio, TX
Broker, 210-414-0966, San Antonio TX Real Estate

Hi Tony, Cute baby in the photo with you!  You are making me feel guilty... I need to buy life insurance.

Sep 23, 2008 09:19 AM
Tina Maraj
RE/MAX One - Fullerton, CA
Celebrating 30 Years of Real Estate Sales

What happens if you get divorced? Is this just another investment to fight over?

Oct 23, 2008 03:45 AM
Tony Wangrycht
OneAmerica - Seminole, FL - Seminole, FL

Tina, good question, and I've seen it both ways, an issue in a divorce, as well as a non-issue. It would depend on how long a person has been married, if there are children involved and most importantly, is it a permanent type of policy, (where there is a cash value). When I got divorced many years ago, I was required to have a policy on my life to cover child support, just in case "if" something happened go me. I've seen couples who have their own policies keep what they had, and just changed the beneficiaries. Cash value polices are normally a protected asset from creditors, but in a divorce, it would again depend on circumstances, again length of marriage, are their children involved, who was paying for policy, (personal or business) and more. I hope that this helps, 

Oct 23, 2008 04:18 AM