Many Americans do not have adequate life insurance coverage. The number of people going without sufficient insurance is high enough that it has gained the attention of researchers. The number of Americans who don’t have life insurance is more than 90 million. Researchers believe that this number is related to the lack of jobs. One interesting fact is that almost 80 percent of Americans only have group life insurance policies offered by their employers. If these individuals lose their jobs, they also lose their life insurance coverage. The solution to this problem is to decide what individual life insurance needs are and fill them.
Women who earn more than $100,000 annually are less likely than men to use group or individual insurance. Although women tend to have longer lifespans than men, statistics show that the majority of them don’t have enough individual coverage. However, this doesn’t apply to all men and women. These statistics came from research and represent majority percentages rather than the entire population. Another factor that isn’t always considered in purchasing life insurance is the cost of replacing the child care activities of full-time mothers. The costs of driving, housekeeping, child care, food and other details of caring for children must be considered.
Since the people in America are living longer than they were in the past, the premiums of life insurance policies have dropped. The reason for this is because longevity improvement yields lowered mortality costs. However, there is a more difficult aspect of this equation, which involves the earnings on investment portfolios of insurance companies. Life insurers are regulated heavily, so they must meet reserve requirements. The reserves of life insurers are usually placed in interest-bearing investments that are very conservative. As a result of this and other issues, the insurance premiums for long-term care have risen significantly.
There are several professionals who predict similar trends in the future for life insurers. This is because very little is yielded from their conservative reserve assets. This is another good reason why it’s important to solve life insurance deficiencies as quickly as possible. Life insurance isn’t used only as an income replacement to provide for heirs. It’s also useful in helping to reduce estate taxation, as a tax-favored supplemental benefit to the most valuable employees and to fund the succession of a business. The best way to identify what changes must be made is to contact an agent.