Access to life insurance for working Americans has disappeared

Posted November 15, 2012 by Tinker Kelly at 09:18AM. Comments (1)

Let me share some alarming statics that many of us will find surprising. According to a study done by LIMRA, three in 10 American households (35 million) are uninsured, and half say they need more life insurance.

The survey also showed:

  • 95 million Americans have no life insurance, and those who make between $35,000 and $100,000 a year represent the largest group of these households.
  • Seven in 10 women agree having life insurance is a necessity and all people should have it.
  • One-third of married women do not have life insurance, despite the fact that 7 out of 10 households are dual income.
  • More than half of Gen X and Y households need more life insurance.

Nearly 80% of families don't have a personal life insurance agent or broker, according to LIMRA. And guess what? The 20% of families with a life insurance agent or broker are higher income professionals such as physicians, lawyers and business owners or executives. They are normally the principles in our clients employee population, not the typical participant.

In 2010, there were 184,873 "affiliated agents"— insurance agents who primarily or exclusively sell one insurance company's products — down from more than 246,000 two decades ago, according to LIMRA.

Access to quality life insurance for middle and lower income families has disappeared over the past 10 to 20 years. A life insurance agent simply cannot make lower income American’s a primary market and be financially successful.

The stark reality is that employer sponsored plans through payroll deduction are one of the only realistic ways left for the acquisition of life insurance protection for the majority of American families.

How will the families of your client’s employees face the prospects of lost income and unpaid financial responsibilities? This is a difficulty that can be solved easily and economically by offering portable voluntary payroll deducted life insurance. Encourage your clients to give their employees a chance to plan for the unexpected…..voluntary life insurance that’s (truly) portable can be the difference and will protect their loved ones.

Kelly is chief executive of Nashville, Tenn.-based Voluntary Employee Benefit Advisors. He can be reached at

1 Comment

Posted by: K C | November 17, 2012 5:28 PM

The headline might be a little misleading. Due to the prevalence of insurer and brokerage websites, life insurance has never been more accessible! Not only can you find a wealth of information, you can get online quotes.Make sure to visit a life insurance website that features a quote engine that compares rates from multiple companies. (NOTE: Make sure it doesn't ask for your email or phone before you can see the quotes - you don't want your Inbox flooded and your phone ringing with sales calls for the next month.)You can find a good one at the QualityTermLife website. One of the few where you can use the quote engine, anonymously.Then when you are ready to speak with someone, you will have more confidence, be less likely to get sold more than you need.

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