Research Shows Americans Are Not Taking Out Adequate Life Insurance

In the US, the National Association of Insurance Commissioners and the Life Foundation have done research into life insurance and Americans.

The NAIC is an organization of state insurance regulators. The study conducted by the NAIC found that almost 66% of young families think that both spouses should have life insurance. However, in most cases, they had not taken out life insurance for either spouse.

The study also revealed that just 40 percent of Americans who have life insurance review their policies every year. NAIC CEO, Catherine J Weatherford, says policies should be reviewed each time the renewal premium is paid. She says the policy should be updated to reflect changes like marriage, the birth of a child, divorce or the death of a spouse.

In order to help American consumers evaluate their insurance needs, they have create a website, called "Insure U". It can be found at www.insureUonline.org. The website has guidelines on the right time to buy, increase or reduce life i nsurance. It also helps consumers look at the people who are financially dependent on them and evaluate what their expenses will be if you die. The website also helps consumers see the difference between term life insurance and permanent life insurance, so that they can pick the best type of policy for their needs.

Ms Weatherford also suggests that consumers check with their state insurance department before taking out a policy, to check that the company is legitimate and authorized to do business in the state.

The Life Foundation has also conducted a survey about Americans thought on life insurance. Their survey found that many Americans believe that people who are more likely to die have a greater need for life insurance. However, Americans should, instead, look at the losses their family will incur in the event of their death, rather than the likelihood of them suddenly dying.