Economy Impacts Life Insurance for Families

Many Families Axe Life Insurance From Budget

The recent decline in the US economy has had a variety of ripple effects going well beyond the jobless numbers. One recent such event has come to light in a recent report from LIMRA (Life Insurance and Market Research Association). According to the report, families which have the safety net of life insurance is down to 77%. This is a reduction from 90% just 6 years ago.

While many families sited in the report had very serious concerns about their ability to function financially if something were to happen to the person in the home with the primary income, they let policies lapse as part of their immediate cost cutting measures. Measures which they had to make in order to get by on a monthly basis. Families used in the data were limited to those in which there were children under 18 in the home.

Another related ripple of the economy is the actual number of people now qualified to sell life insurance. As one can imagine, a drop in policy sales has resulted in additional job cuts in the insurance industry. According to the LIMRA information, the number of insurance agents selling these products has dropped by a little over 61, 000.