In the years following the recession, many Americans are thinking more critically about life insurance in an effort to protect their loved ones. However, a new study shows that many groups are facing coverage gaps.
The Genworth study, entitled "Getting Over the Gap: Insights on Life Insurance Coverage in the U.S.," found that large families, unmarried parents, women and consumers with health problems are largely left out of the life insurance sphere. In the cases of large families and unmarried parents, misconceptions about the cost of life insurance is a clear barrier to contacting an insurer.
Many married mothers - 43 percent - also lack life insurance compared to just 34 percent of their husbands. Further, many adults with health problems are hesitant to purchase coverage due to fears that they will face higher premiums than they can afford.
"Consumers often believe life insurance costs nearly three times its actual price, and this is a major contributor to the large coverage gap we're seeing in these four groups," said Brian Bulakites, vice president and national sales manager for life insurance at Genworth.
Life insurance agents can greatly boost insurance sales by educating these demographics on the flexible costs of policies and the large impact that maintaining coverage will have on protecting their loved ones.