83 Million Americans Say Coronavirus Makes Them More Likely to Buy Life Insurance

83 Million Americans Say Coronavirus Makes Them More Likely to Buy Life Insurance

The coronavirus has impacted the human race more than anything else in our history. Its devastating impacts have been felt not only by large economies but individuals also. One critical thing it has done is that it has made us realize that we are not at all prepared for emergencies. This is highly evident from the fact that people are suddenly getting more interested in getting life insurance coverage.

In fact, a recent study revealed some great insights about the American population and what they think about life insurance, especially in the light of the current scenario. It has also provided some great talking points about how we can be better prepared in the future if something similar happens.

Main Findings of The Survey

It was found that about 25% of the people are more likely to get life insurance coverage in light of the coronavirus pandemic. Breaking down that percentage by gender, it was found that 38% of the men said they are more likely to buy life insurance while only 14% of the women agreed.

A main point of relief is that majority of people actually already own life insurance. However, only 60% of them know what it really does. This shows that there is a significant knowledge gap among consumers. Not only that, but about a third of the respondents didn’t even know how much life insurance an average person needs. Their average guess was quite low than the usually recommended number.

Also, 39% of the people who already have life insurance are likely to increase their insurance coverage while only 20% of the people who don’t have life insurance are likely to get one in the first place.

How To Get Started With Life Insurance

The type of life insurance and the amount that is right for you depends totally on your personal factors. That is why the first step is usually to establish your financial obligations in your future. You can use the golden rule of thumb to come up with a type and number.

Usually, the rule is that you should apply for an amount that is 10 times your annual income. However, sometimes this rule of thumb is not sufficient to correctly estimate the amount. So, you should carefully weigh your needs and decide accordingly. Just keep in mind that it should be enough to meet all your future obligations like children’s education, debt payments, basic expenses, etc.

You should also know some vital life insurance statistics to be more knowledgeable and make the right decisions.

For instance, the average term life policy of $500,000 for 20 years would cost an average of $30 per month for a 35-year-old nonsmoker. This is something that almost everyone can afford. Whole life insurance policies, however, tend to be more expensive as they last a person’s entire life and can build cash value at the same time. That’s why it is usually seen that people opt for term life insurance. However, the decision totally rests in your hands.