Thursday, October 20, 2016

LIMRA Facts About Life 2016

LIMRA is out with their annual research on life insurance protection.  2016 represents the organization's big update since their shocking findings in 2010 that found a 50-year low in individual coverage.

This year's findings are only marginally better. Only 44 percent of households have individual insurance and 20 percent of households with children under 18 are uninsured.

For this blog, the question is "why?"  Why are people going without insurance?

LIMRA points to a few reasons, including other financial priorities and a general lack of knowledge about the product.  Thirty-five person of households say they aren't protected because they have not been approached by a financial professional.

This last finding is one reason all stakeholders - the industry, regulators and consumer groups - need to work together to ensure all communities have access to financial tools. There is research by CFS that suggests those most likely to work in underserved communities are the least likely to make it through the state licensing process due to barriers to entry.   It is critical to knock down artificial barriers keeping resources out of underserved communities.