Fewer Americans are buying life insurance. Here's when you might need it
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 25 2024
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Source: CNBC
- Decline in Life Insurance Ownership: The percentage of Americans with life insurance has decreased significantly over the years, leaving many households financially vulnerable in case of unexpected deaths.
- Reasons for Decrease: Factors contributing to the decline include deferred life milestones by younger generations, rising costs of homeownership and child care, increasing debt burdens, and the complexity of purchasing life insurance.
- Types of Life Insurance: There are two main types of life insurance - term and permanent. Term insurance is recommended for most consumers due to its fixed premiums and flexibility in terms of coverage duration.
- Considerations for Buying Life Insurance: Consumers should evaluate their financial situation, consider dependents' needs, and assess future expenses like tuition, mortgage payments, and funeral costs before deciding on life insurance.
- Importance of Life Insurance: Despite the decrease in ownership, experts emphasize the importance of life insurance in providing financial security for loved ones and covering various expenses in case of a policyholder's death.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
