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I am not going to die anytime soon
Unintentional injuries
Injuries that are not inflicted purposely and that occur without intent of harm. These unplanned events can include falls, motor vehicle crashes, and poisoning. A serious public health threat
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"They always looking for ways to not pay"
According to National Association of Insurance Commissioners (NAIC), full-year net death benefits came in at $94.54 billion in 2021, a 10.6% increase from the $85.49 billion paid out in 2020, according to a review of U.S. regulatory data. Net death benefits paid in 2021 were also roughly 28% higher than the $73.74 billion paid in the pre-pandemic year of 2019.
They do not pay if you...
Lying on the application
- Family health history
- Medical conditions
- Alcohol, drug use
- Risky activities
- Travel plans
Doing risky activities
Depending on the situation and your policy, you may not be covered if you die while doing these. Some jobs like logger, offshore fisherman or pilot. You can still get life insurance. The premium will be higher depending on the level of risk
- Scuba diving
- Base jumping
- Hang gliding
- Auto racing
- Aviation
- Rock and mountain climbing
Suicide
Most policies have a "suicide clause"—or contestability period—during the policy's first two years. Life insurance policies won't cover a suicide that occurs during this period. Things can get tricky if a policyholder dies of a drug overdose during this time. However, in this case, the insurer would need to prove the overdose was intentional to withhold the death benefit
or
Murdered by beneficiary
Do you know that your policy will pay out death benefits to your beneficiaries if you die from a motor vehicle accident, drowning, poisoning, accidental drug overdose?
"It's expensive, I cannot afford it"
According to NerdWallet’s 2022 rate analysis, the average cost for auto insurance is $1630 /year.
According to NAIC, average cost for home insurance is $1,249 /year
General liability insurance, $1168 /year
Average for 40 year old health insurance, $5,856 /year
Phone Insurance, $210 /year
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In 2020, 54 percent of all people in the United States were covered by some type of life insurance, according to LIMRA’s 2020 Insurance Barometer Study. Other findings from the study include:
- While historically, most consumers preferred in-person sales, by 2020 most consumers preferred other distribution methods like phone, mail and online.
- The proportion of consumers who preferred internet/online sales grew from 17 percent in 2011 to 29 percent in 2020. This increase reflects the COVID-19 epidemic lowering the popularity of in-person sales.
- LIMRA says there was a “needs gap” of 16 percent in 2020, which translates to 41 million consumers who say they need life coverage, but do not have it.
- Americans consistently overestimate the cost of term life coverage. Half the population estimate the cost of life insurance at more than three-times the actual cost
The above might be what the 46% think, but it’s worth taking the time to understand whether or not getting life insurance is right for you. The sooner you begin coverage and set up a plan for payments, the cheaper it will be.
According to an S&P Global Market Intelligence analysis of annual statutory statements, U.S. life insurers saw their yearly direct life insurance premiums surpass $200 billion for the first time in history in 2021. $204 B. Universal life saw the largest year-over-year growth at nearly 60%, followed by variable universal life at 23.8%. Universal life with secondary guarantees, index and whole life also recorded double-digit growth. Term life net premiums, on the other hand, fell by 5.8%
If you are in the 16% "needs gap" pool, need help with best options for you, getting coverage today only takes 10 minutes
Sourced. LIMRA, NAIC, Investopedia, Cornell Law
