Only 39 percent of U.S. households recall having an opportunity to purchase life insurance in the past two years, according to a report from LIMRA.
The 2011 Life Insurance Buyer/Non-buyer study revealed that 22 percent of households shopped for life insurance in 2011, compared to 11 percent in 2003. The percentage of those shoppers who purchased coverage decreased from 70 to 54 percent comparing the same two years, however.
Analysts suggested that the increased availability of online shopping opportunities may be why more people shopped for coverage, or at least a significant contributing factor. At the same time, researchers note, online shoppers were only 36 percent likely to buy a policy. In contrast, 67 and 74 percent of those who dealt with sales representatives or met them in person bought policies, respectively.
Employee benefit services may be useful in offering this coverage to workers. While many lack coverage, researchers noted that 70 percent of those without a policy were still considering whether or not to purchase life insurance, indicating there is at least some interest.
The report suggests that certain elements of the population were underserved, such as single mothers. Children are commonly a reason for Americans to consider purchasing a policy, LIMRA notes, and one-third of single mothers who are also primary household wage earners lack coverage. At the same time, two-thirds of those with policies stated that their coverage might be insufficient.
