Why Life Insurance Is Undervalued by Consumers

Ever found yourself wondering what makes the difference between feeling helpless and empowered during life's most challenging moments? Imagine being thrown into the harshest storm with just a shaky umbrella. This, my friends, is what facing life without a safety net feels like, especially when it applies to your family's financial security. While life insurance might not be the topic of your next dinner party, it can be the anchor that keeps your ship steady during turbulent times. It's a fact that 1 in 3 families would struggle to meet living expenses within a month of the primary income earner's passing. Yet, surprisingly, many brush off the idea of life insurance, believing they're invincible or that it's just an 'additional expense. But ask yourself: Is it more expensive than the price of peace? Now, let's break it down. Picture life insurance as your own personal superhero, invisibly flying around you, ready to swoop in when life takes an unexpected turn. Some see it as a parachute; you may not always need it, but when you do, you'll be thankful it's there. Others might consider it unnecessary. But, like a lifeboat on a calm cruise, the seas may be calm now, but unpredictable waves lurk in the horizon. In today's ever-evolving world, where uncertainties are the only certainties, ensuring your family remains afloat during life's most challenging storms is paramount. Life insurance isn't just an investment in money—it's an investment in peace, resilience, and foresight. Don't let hesitation steal that security. Prepare today and empower your tomorrows. Dive deep, understand the waters, and embrace the shield that life insurance provides. Because when the storms come, and they will, you'll have more than an umbrella – you'll have a bunker.

Appreciation for the value of life insurance has grown since the pandemic. However, new LIMRA research suggests an uphill educational climb for benefit brokers and their employer clients just ahead of Life Insurance Awareness Month in September and open enrollment. Among the key findings supporting this conclusion: 57% of those who only have life insurance through their employer believe they have enough coverage, which doesn't square with reality. The median basic coverage offered at the workplace is either a flat sum of $20,000 or one times salary — far less than experts recommend, according to LIMRA's 2025 Insurance Barometer Study. Nearly half of households that only have workplace life insurance coverage say their families would struggle financially in less than six months should a wage earner die unexpectedly.    There's also a disconnect in terms of perception. While only 29% of U.S. adults reported having workplace life insurance across LIMRA consumer studies last year, for example, the estimate is actually closer to at least 39%. "It is difficult to know when this awareness gap began taking hold, but it was probably sometime around 2005, increasing with each year since," observes Steve Wood, director of LIMRA Market Research. He cites several factors to explain this disconnect, beginning with the adoption of high-deductible health plans that require more time during open enrollment periods to examine benefit options. Others include the proliferation of smartphones that fuel shorter attention spans and less likely to read the fine print, as well as fewer in-person open enrollment fairs. More than one-third of working Americans are uncertain whether they even have access to life insurance at work, and of those that have it, only 57% feel they understand their life insurance benefits well, reports Kim Landry, associate research director for LIMRA Workplace Benefits Research. In the face of such confusion, what's clear is that they value the coverage. At least half of working Americans cite it as an important benefit for the future, which is up six percentage points from 2021. "We know that employees understand their benefits better when companies employ a comprehensive benefit communication strategy, and that includes ongoing touchpoints throughout the year," she says. Half of workers surveyed by LIMRA say their employer only shares information about benefits during open enrollment, while 73% would prefer to receive information either a few times or frequently throughout the year. Another finding is that younger workers are apt to want more frequent benefit communication. Read more here: https://lnkd.in/ecFnWrcx #lifeinsurance

This is why Gen Z isn’t buying your insurance. It’s not because they’re careless. It’s because they don’t see the value, yet. Here’s what’s pushing them away: 1/ The messaging is stuck in the past. → “Protect your legacy” means nothing to a 25-year-old. → Try: “Cover your rent if life throws a curveball.” 2/ The buying journey feels broken. → Endless forms. No clarity. No control. → They expect to buy in minutes, not sit through a call. 3/ Jargon kills trust. → Terms like “riders,” “cash value,” and “beneficiaries” lose them fast. → Speak like a friend, not a textbook. 4/ They're not scared of risk—they plan around it. → Don’t sell fear. Sell flexibility. → Help them prepare instead of panicking. 5/ One-size-fits-all doesn’t work anymore. → They want plans that grow with them. → From gig workers to digital nomads—lifestyles vary. 6/ They research everything. → If your online reviews are weak or missing, it matters. → Social proof > sales pitch. 7/ Purpose matters more than product. → Show how insurance empowers freedom, not just protection. 8/ They value transparency over tradition. → Break down costs. Show where the money goes. → No fine print. No fluff. If the industry doesn’t adapt, it’ll lose relevance. Not because the product failed But because the delivery did.