7 Bitter Enemies of Life Insurance
September 18, 2019 by Allison Bell
It’s Life Insurance Awareness Month. Hurricane Dorian just delivered a stern message about the fragility of life. U.S. life expectancy keeps falling.
But new U.S. individual life sales are soft.
AALU — a group for people who sell life insurance and related products — and the Future of the Industry Working Group estimate that at least 70 million U.S. adults have too little life insurance, or no life insurance at all.
One reason may have to do with the supply of products: Years of low interest rates may be slowly, quietly reducing life insurers’ enthusiasm for taking on more life insurance policy risk.
Another reason may be demographic: Members of Generation X, who are mostly ages 39 to 54, are now the consumers in their peak parenting and earning years. The number of babies born each year in the Generation X period was small. That means the number of people who have an obvious reason to buy life insurance, and the money to pay for life insurance, may be much smaller than it was 10 years ago.
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