The tragic loss of a loved one can be devastating – emotionally and financially. No one should be on their own in hard times especially after a beloved family member passes away.
Life insurance emerged in mainstream America generations ago to provide support to America’s low and middle-income families following a heartbreaking loss. Life insurance companies strive to keep life insurance affordable for working Americans, which aligns with public policy efforts to create greater financial security and stability for all Americans, including racial and economic equity. Like housing, life insurance is a path to intergenerational financial security.
Leveraging these kinds of capabilities for working families is key to helping achieve important public policy goals and making the economy work for all Americans as we move forward.
The pandemic triggered a review and reaffirmation by many Americans of how life insurance remains an essential tool for people looking to protect their family’s financial future.
The percentage of Americans covered by life insurance had been declining. In fact, in early 2021, just 52 percent of Americans had coverage, down from 63 percent a decade ago.
But in the first six months of 2021, the total number of life insurance policies sold increased 8%, compared with prior year results. This is the highest policy sales growth recorded since 1983, according to LIMRA.
A life insurance policy owner can leave a financial legacy that can cement a family’s economic status for years to come. The creation of an instant estate can ensure a family keeps paying the mortgage after the premature passing of a family wage earner. It can ensure that dreams of a college education for children remain intact after the passing of Mom or Dad.
While no one can predict what the future will hold, everyone can prepare for it. That simple truth underpins how America’s life insurance companies serve Main Street America today. No matter their age, their job, their gender or race, all Americans deserve the chance to build financial security that will serve them in the good times and protect them in the hard times. Life insurers have the tools and know-how to help them protect their family’s financial future.
Susan K. Neely was President and CEO of the American Council of Life Insurers (ACLI), the nation’s leading trade association determined to help families live better lives by achieving financial security and certainty. As president and CEO, Neely drove public policy and advocacy on behalf of ACLI’s member companies that represent 93 percent of industry assets and serve 90 million families. She is CEO Emeritus through December, 2024.
