Life insurance simply not a top financial priority: study
According to LIMRA research, both men and women are less likely to own life insurance than they were 10 years ago, but the declines were larger for men.
Men are now approaching the traditionally lower ownership rates of women. Thirty-nine percent of men and 43 per cent of women actually have no life insurance coverage at all.
Most notably, middle-aged (35-54) married men are typically in their highest earning years, and half are fathers. Yet, this group had double-digit decreases in the proportion owning individual life insurance from 2004-2010.
And that trend seem to be continuing. People just aren't buying the way the used to. For instance, even though one third of new parents agree they lack suffient coverage, 6 in 10 of tem don’t shop or buy life insurance within two years of the birth, according to LIMRA research.
Often, newlyweds, new parents and divorcees have many different financial needs competing for limited dollars.
Still, conventional wisdom was that certain life events - getting married, divorced or having a baby – were primary triggers for consumers to start looking more closely at insurance.
However, these milestones no longer seem to be prompting the majority of this group to seek the coverage they might need to protect their families, LIMRA maintains, highlighting the standard reasons to at least review a policy:
1. to pay final expenses
2. to cover children’s expenses
3. to replace a spouse’s income
4. to pay off debts
5. to buy a business partner’s shares
6. to pay off estate taxes
But who's worrying? While more than one-third of new parents and 45 per cent of newlyweds and recently divorced consumers acknowledged they probably didn't have enough life insurance, nearly two-thirds of them admitted that it simply wasn’t their top financial priority.
Do you share that view? Do you have a life insurance policy? If not, why not?
By Gordon Powers, MSN Money
Posted by: mahendi moti | Jun 18, 2021 1:21:29 AM
i dont have insurance.
Posted by: common sense | Jun 18, 2021 9:50:51 AM
This is not surprising, today people are more pre-occupied with having their toys (big screen TV's and smart phones) and their fun (vacations to the Caribbean every year) than they are with being responsible and making sure their children and/or spouse are taken care of if something bad happens to them. People have no problem finding 100$ a month for the cell phone bill but can't find 40$ a month for some basic term life insurance to at least be covered while your children are growing up. Priorities today aren't in the right places.
Posted by: Charmy | Jun 18, 2021 10:38:38 AM
Sounds like common sense may be in the Insurance Business. Who can afford to go to the Caribbean every year or even every 10 years, certainly not me. With the pitiful wages paid in Canada and the cost of living continually going up an up there is barely enough left to live on.
No I do not have and cannot afford Life Insurance. And no I do not have a $100 a month smart phone or bill.
Posted by: common sense | Jun 18, 2021 11:13:07 AM
I do not work in the insurance business. I just see people everywhere constantly connected to their cell phones everywhere, restaurants, the movies, at work, etc.... I figure if they can afford that they could find the money for life insurance if something happens to them their smartphones won't do much for their families. Also I agree with you for the vacations I never said people could afford to go on vacation every year I said people go on vacations every year there is a difference. Some people have already cut all they can and still don't make enough but wages in Canada are not that bad, go to China and you'll see what pitiful wages are. Needs are food and shelter, this does not include Cable, internet, restaurants, vacations, etc... 75 to 80% of the working population can pay for rent, electricity and food with their salaries. The problem is someone making 30K a year wants the same things as someone making 50K a year and that person wants the same things that someone making 100K a year has (key word in that sentence is "wants" not "needs").
Posted by: Skeptic | Jun 18, 2021 2:36:11 PM
I think another factor may be the increased distrust of insurance companies. There are too many stories of people who have had their claims denied. I have a pre-existing health condition. I applied for insurance and even before they let me see the policy they were trying to get me to sign a waiver for all the things it wouldn't cover. We walked away because it was quite evident that if anything did happen to me, they were just going to find a way to blame it on the pre-existing condition so they wouldn't have to pay. I know of others who have run into the same problems. They are charged more because they have pre-existing conditions while at the same time the company is saying that anything relating to the condition will not be covered. How does that make sense?
Posted by: Point of view | Jun 18, 2021 2:47:46 PM
I do not have Life Insurance. For me, it is just another bill to pay. On one hand, stagnant salaries, more expensive staples and more charges on everything let me less available money. On the other hand, better medical screening and procedures mean better chances of dying old. I prefer paying my mortgage faster and saving for the future. If something happens to me, my wife can go on with our savings and the home equity.
Posted by: Insurance?? | Jun 18, 2021 2:53:01 PM
It’s easy to trust your insurance company to act in your best interest. After all, the term “insurance” is supposed to give you some peace of mind. But the bottom line is that insurance companies are in it for one thing: profit. While they might call their use of loopholes to pad their pockets “good business,” I call it “scamming.”
When a claim is made, it's always an issue. Insurance will want to find a way not to pay the claim. No kidding people commit insurance fraud, and every American tries to sue because they know it will come out of insurance. It's one big circle jerk, 21st century scammers.
Posted by: GetReal | Jun 18, 2021 5:45:08 PM
Clearly you people have never had a family member or friend die before age 65 and seen how the proceeds from their life insurance policy saved the family home, clothed and fed the kids, and paid for all their schooling needs-it sure saved my family from destitution! ( Statistics Canada shows 25% of the population doesn't make it to 65). Billions are paid out in claims every year-check the numbers that publically traded insurance companies are required to report-do you really think they would be in business if they never, ever, paid a claim?!
Posted by: Crista | Jun 19, 2021 2:52:15 AM
Get real,
You must be working for the Insurance company and if not, you have someone close in the family who does. Long story short: I used to work for a media company. The boss by the name of Al Carruthers (a real jerk, stingy and greedy at the same time) would not pay us anything as far as insurance goes. Yet, he forced us into buying insurance out of our pockets. He contributed 10%. The rest was covered, forcefully, by us. At the time, my salary was minimum wage, because in spite of my extended education this jerk would not pay more. The insurance was supposed to cover the dental costs as well. I paid one year. After one year, I needed some dental work done. A matter of three hundred dollars. When I claimed the money, I was denied for no reason. Yes, they are in for the money and to rip people off. Do not buy insurance. This is Great West Life in Winnipeg. A company that shouldn't be in business. I know two people working there. None of them is poor. They live in affluent areas of the city, are wealthy and have expensive cars and homes. I am not surprised. The money is stolen from the people buying insurance. Save your money, pay off your debt and get your kids educated. This is the best life you can offer them after you pass away.
Posted by: common sense | Jun 19, 2021 10:46:29 AM
Crista,
Hopefully for you things will go according to your plan.Unfortunately every day people die in car accidents or from disease (which usually prevents them from working for a while before they die eating up their savings). Life Insurance is something that you buy in the hopes that you'll never have to use it. But when you have a family and a mortgage and if something bad happens to you it's there for your family to be able to keep their home and have some money for education. Also giving your old bosses name out doesn't do anything to advance your point. Either does the mentioning of wealthy people you know that work for insurance companies. You just come of as a bitter and jealous of other peoples success. Also why is it that someone that thinks having life insurance is responsible has to work for or know someone who works in insurance??? Not all insurance is worth buying..... life insurance should only be for people who earn money and their income will need to be replaced if they die, you should not buy life insurance for your kids that I agree is a waste.