Since 2004, our industry has come together each September to highlight the value and importance of life insurance. Created to help consumers understand the value of life insurance and how it can protect their financial futures, Life Insurance Awareness Month is also an important moment to remind ourselves of those who struggle with access.
Growing up in a small town outside of Charleston, South Carolina, I saw this struggle firsthand. My dad, an elder in our church, was called upon many times to help families gather resources and funds to help pay for the burial of a loved one and cover their daily expenses on less income.
The problem was that many insurance institutions had not taken the time to understand what our community needed. This left neighbors and friends with little awareness and limited access to the protection that could make a difference in their everyday lives.
This year, I want to encourage the insurance industry to remember that for millions of Americans, especially the middle-market, access to life insurance can make all the difference for their financial wellbeing. Look no further than the last few years, as the U.S. life insurance industry paid out a record $282.3 billion in guaranteed life insurance benefits from 2020-22 while the number of new policies rose to levels not seen in decades.
Still, just 51% of Americans have life insurance, down from 62% in 2013, according to a 2024 LIMRA/Life Happens Insurance Barometer Study. It is our responsibility to change that.
We know that insurers need to provide a seamless customer experience online and in-person, expanding access to customers who would prefer either, or both, options. We also need to better educate consumers about the cost of life insurance. According to a Forbes Advisor Survey from August 2023, 82% of Americans overestimate the cost of a policy, with the largest majority incorrectly guessing the cost to be three times as high (28.4%).
The life insurance industry and TruStage are committed to expanding information about and access to affordable financial protection. Far too many American families face financial distress after losing a breadwinner. An unexpected death can take generations to overcome and jeopardize housing, education and retirement security.
By getting closer to our customers, increasing awareness about the importance and affordability of life insurance and improving the overall experience, more American families can get the peace of mind that comes with financial certainty.
Terrance Williams is President and CEO of TruStage.
