Life expectancy declines highlight need for life insurance – Triple-I | Insurance Business America
The drop in US life expectancy highlights the importance of purchasing life insurance coverage, according to the Insurance Information Institute (Triple-I).
US life expectancy at birth dropped in 2021 to its lowest level since 1996, according to data released last week by the National Center for Health Statistics.
“September is Life Insurance Awareness Month and provides the opportunity to further inform consumers about the essential financial protection and peace of mind a life insurance policy provides,” said Sean Kevelighan, CEO of Triple-I. “Unfortunately, in recent years we have seen more Americans perish as a result of COVID-19, as well as some derivative effects – including people driving more dangerously, keeping in mind we had the largest annual percentage increase of fatalities on our roads in the US than ever before in history.
“What’s more, the combination of increased climate risk and more people living in harm’s way, such as coastal and timber-rich areas, is compounding the problem.”
According to Triple-I, people should consider buying a life insurance policy if any of the following criteria apply to them:
- Someone depends on them financially and will need significant financial resources after their death
- Their estate has insufficient assets to cover taxes and debt
- They wish to cover their funeral and burial expenses
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“The 2022 Life Insurance Barometer Study identified four widely held misconceptions about life insurance,” Kevelighan said. “A sizable number of the study’s 8,000-plus respondents dramatically overestimated the cost of a life insurance policy and mistakenly believed the life insurance coverage they had through their employer was sufficient.
“Others thought life insurance was too difficult a product to buy or a product they would need only when they were older. In the wake of the deadliest pandemic in a century and as the number of fatal motor vehicle crashes soar, Americans should talk with their insurance professional about securing the right type and amount of life insurance coverage.”