Monday, Sep 10,2012
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According to a recent study released by Swiss Re, Americans are uninsured or underinsured by $20 trillion.
For more than a decade, Swiss Re has measured the "protection gap," or the difference between necessary and available resources to maintain dependents' living standards following the death of the head of the household. According to the most recent data, the protection gap has increased by 10 percent, and now rests at $20 trillion.
According to the study, life insurance sales have decreased annually by 5 percent since 2007, and many policyholders have allowed existing policies to lapse rather than renew coverage.
A second study, conducted by Harris Interactive, shows that younger Americans, in particular, are not insured. According to this study, 56 percent of consumers between the ages of 18 and 34 do not have life insurance.
Both studies conclude that the decline in coverage is mystifying, given that it is relatively inexpensive and a financially sound way to protect one's dependents.
However, some consumers may not be aware of that. According to the second study, 45 percent of surveyed consumers who did not have life insurance admitted that they did not have it because they believed it costs too much.
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- Study: Americans severely underinsured Monday, Sep 10,2012
- Poll: Many consumers feel protected by insurance, but not all fully understand it Thursday, Sep 06,2012
