Need For Life Insurance Heightened By The Global Pandemic

Courtesy of LIMRA

One thing that the COVID-19 pandemic has made clear is that life is fragile and a person’s financial situation can change very quickly.

Yet, despite the fact that people generally recognize the value of life insurance, LIMRA research shows 46% of Americans are uninsured and many more do not have enough coverage. Before the pandemic, nearly 1 in 3 families said they would face financial challenges within a month if the primary wage earner died.

Every September, the industry — led by Life Happens — comes together to sponsor Life Insurance Awareness Month (LIAM). This campaign is designed to educate consumers about the importance of life insurance.

“LIMRA is proud to support LIAM and help raise consumer awareness about the vital role life insurance plays in protecting families’ financial security,” said Gina Birchall, chief operating officer, LL Global. “Our research shows life insurance ownership has declined over the past 10 years. Campaigns like LIAM help ensure consumers understand the value of life insurance and take steps to obtain the coverage they need.”

According to LIMRA’s July consumer sentiment study, life insurance owners are more likely than non-owners to worry about having adequate coverage (64% versus 51%) as a result of COVID-19, and nearly 3 in 5 people expressing heightened need for life insurance today are current owners.

In the latest episode of LIMRA Unplugged, LIMRA asked industry leaders for their perspectives on the importance of life insurance. Conor Murphy, executive vice president and chief operating officer, Brighthouse Financial; Barbara Turner, president and chief operating officer, Ohio National Financial Services; and Dave Wilken, president of the Life Insurance Business, Global Atlantic Financial Group answer important questions including:

• Why should people own life insurance?
• How much life insurance is enough?
• What are some of the common misconceptions around life insurance?

They will also explore how their respective companies are helping people understand the value and security of owning life insurance.