Study Shows Life Insurance Maintained Through Economic Turmoil

Posted in Life Insurance

September 23rd, 2009

A recent survey shows that despite difficult economic times, many middle-class policyholders have insisted on holding onto their life insurance coverage. According to the First Command Financial Behaviors Index, who released the August survey, only four percent of Americans surveyed reported making changes to their personal life insurance policies as a result of the economy. And of those who did make changes, 42 percent actually increased their coverage.

These numbers show a sharp contrast to reports that life insurance is suffering and sales are dropping. According to the CEO of First Command Financial Behaviors Index, he believes that maintaining life insurance helps many policyowners actually feel better about their financial futures, which is why they hold on to their policies. They know that they can take care of their families after they’re gone, or maybe even cash out part of their policy while they’re alive depending on the type they obtain.

But while the survey showed some surprising numbers, this doesn’t mean that everyone is going along for the ride. There are still 68 million adult Americans with no life insurance coverage, according to LIMRA International. And many of those who are insured have far less coverage than they should.

Organizations like LIFE Foundation – who asked First Command to create the survey for Life Insurance Awareness Month (LIAM) in September – are working to increase awareness of the need for life insurance coverage, as well as ways to obtain it and how to make smart decisions after purchasing a policy.

Since the recession started, have you been able to maintain your life insurance coverage?