According to a new study by LIMRA, the sales potential in the life insurance market in under insured U.S. households has doubled.
The report, Trillion Dollar Baby Growing Up, is a follow up to the 2004 report, in which LIMRA estimated that life insurance sales would increase $9.5 trillion if the 48 million under insured households bought the correct amount of insurance. With life insurance ownership at an all-time low, the opportunity has doubled since the last report, with half of all households in the United States saying they need more life insurance. This now has a sales potential of $17.5 trillion, the study says.
“The greatest challenge is not getting them to understand they need life insurance, but rather getting them to give it a high enough priority to investigate coverage now," said LIMRA markets research director Cheryl Retzloff. "These consumers need to help to decide what type to buy, how much coverage they need and how life insurance can play an important role in their overall financial security.”
According to a report from LIMRA last year, 40 percent of households would have immediate trouble paying bills if their primary breadwinner died today. The company said life insurance ownership is currently at a 50-year low.