Most people know life insurance can be an important part of protecting their family’s financial future, but new research from Ethos suggests many Americans wait to take action. Nicole Myers, chief underwriter at the life insurance platform Ethos, joined “We Are Austin” to discuss what causes people to delay and which major life moments may be a good time to reconsider coverage.
We Are Austin host Trevor Scott spoke with Myers about the findings and how families can begin evaluating their life insurance needs.
Knowing You Need Coverage and Getting It Are Different Things
According to research shared by Ethos, many Americans recognize the importance of life insurance well before they actually purchase a policy.
“The research shows that 70% of people knew that they needed life insurance long before they ever acted on that and actually purchased a policy,” Myers said.
According to Myers, 30% waited nearly a year to obtain coverage, while another 17% waited two years.
Is Life Insurance More Affordable Than People Think?
Cost appears to be one of the biggest reasons for that delay.
“The number one reason why people aren’t purchasing is because they don’t think that it’s affordable,” Myers said.
She said nearly 40% of those surveyed assumed coverage would be out of reach, while 43% said knowing the actual cost sooner could have prompted them to act earlier.
Myers said a healthy 30-year-old may be able to obtain a meaningful amount of coverage for around a dollar per day, though actual premiums vary based on the applicant, policy and amount of coverage.
“That barrier is more of an education barrier than an actual barrier,” Myers said.
Life Milestones Can Be a Reminder
Certain changes in life can also prompt people to think more seriously about protecting their family’s finances.
Myers pointed to getting married, expecting a child, buying a home, losing a loved one or watching a loved one age as common moments when people reevaluate their needs.
“These are usually the milestones that make people step back and say, it’s time. I need to get coverage now,” Myers said.
Life insurance needs can change over time, so existing policyholders may also want to periodically review whether their current coverage still reflects their family’s circumstances.
Getting Started
Myers says Ethos has worked to simplify a process that historically could take several weeks.
The company offers an online application that Myers says can be completed in about 10 minutes, with many applicants able to receive coverage the same day. Eligibility and approval can vary.
Visit Ethos.com for more information about life insurance, coverage options, and the application process.
Life insurance costs, eligibility and coverage vary by individual and policy. Consumers should review policy terms and consider their own financial circumstances when determining appropriate coverage.