Life insurance first to go for some cash-strapped Americans

Apr 25, 2011

Many Americans would be willing to let their life insurance policies lapse before any other type of insurance, in order to save money.

A recent poll by MSN Money found that, if faced with the need to cut down on some form of insurance, many Americans would choose to go without life insurance coverage.

Of the 10,391 responses the source received, 39 percent of respondents said they would do away with their life insurance coverage. They selected life insurance over auto insurance, heath insurance and home insurance, which would be first to go for 13, 6 and 5 percent of respondents, respectively. The remaining 37 percent say they wouldn't cut any of their insurance coverage to save money, even during a financial crisis.

Kelly Long, a Chicago-based financial life coach, told the source it may be wise to contact an insurer and try to lower premiums without dropping the policy altogether, since they may no longer qualify when they decide they can afford their policy again. "You never know what it will take to get it back," Long said.

Though life insurance coverage is important, many have been scaling back on their policies in order to save money. According to the Insurance Information Institute, one million fewer new applications for life insurance were filed between 2004 and 2009.

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