Life Insurance: This is not exactly the type of topic that comes up during family dinner. No one really wants to talk about the death of a loved one. But when it comes to securing your family's financial security, it's a conversation that needs to happen.
In fact, there are many things about life insurance that people do not know.
Find out what people had to say about the cost of life insurance and their reasons for (or against!) Buying coverage in the new national survey from Erie Insurance.
Life insurance: It is more affordable than most people think
When asked why they do not have life insurance, almost four out of ten (38%) said it would be too expensive. However, survey results show that most people probably overestimate the cost.
For example: With Erie Family Life, a $ 250,000 20-year policy would cost about $ 200 / year for a healthy 30-year-old man and $ 1
When asked to estimate the cost, more than half of those surveyed (56%) said the policy would cost $ 300 / year or more, including 10% who thought it would be $ 500 / year. As much as 11% more than doubled the actual cost and estimated the cost at more than $ 500 / year.
The good news? Life insurance is probably cheaper than you think. Estimate your coverage with our life insurance calculator, or talk to your local ERIE agent who can give you a tailored quote based on your specific circumstances (and budget).
Main reasons and motives for having life insurance
So why do people buy life insurance, anyway? It's not for you – it's for those you leave behind.
The survey asked life policyholders to list one or two reasons to purchase this coverage.
The best answers were:
- Having money to leave as an inheritance for loved ones: 37%
- So my loved ones would have money to pay for my funeral expenses: 37%
- So my husband and / or children would have enough money to maintain our current standard of living without my income: 32%
- So my loved ones could pay my debts: 17%
- So my husband and / or children could maintain our current home: 10%
See more surprising facts and statistics about life insurance in the information about the survey results.
More coverage issues? Check out these related blog stories:
CAN YOU HAVE A LIFE INSURANCE POLICY UNDER COVID-19?
The COVID-19 pandemic is an unparalleled health event for many of our lives.
Have you ever wondered how someone diagnosed with the virus would be affected when it comes to buying life insurance? Four out of ten people (41%) said they did not know how the virus could affect someone's eligibility to buy a life policy.
The truth: Some insurance companies have developed specific screening issues during the bidding process, related to COVID-19.
In general, a person who has tested positive but has been asymptomatic cannot see any effect on their ability to obtain life insurance. However, a person who had tested positive and been in hospital may see an impact. For qualification questions, talk to a local professional such as your local ERIE agent.
LIFE INSURANCE AND HEALTH CONDITIONS
When you want to buy life insurance, how does your general health matter?
Survey says: The majority of people know that certain health conditions affect the price of a life insurance policy, but there is some uncertainty. When asked if high blood pressure can affect the price of your insurance, 65% of the population said exactly that insurance companies consider that when determining an interest rate. Others (20%) were not safe, while 15% mistakenly assumed that high blood pressure did not affect your frequency.
Many were also unsure of how a history of cancer can affect someone's ability to obtain life insurance. Almost one in five (19%) believe that a person who has had cancer can not get life insurance, while 37% do not know if they can or not.
In fact, cancer, along with other previously serious conditions such as heart attack or stroke, often does not automatically disqualify a person from receiving life insurance. Erie Insurance takes into account the type of disease and the degree of severity, the time that has elapsed since the diagnosis and the current medication or treatment regimen when deciding whether a person is entitled to a life insurance policy. ?
According to our survey, most people mention their spouse (59%) or child / children (38%) as their life insurance policyholder. However, some people want to take care of their hairy friends who are left. Surprisingly, 10% listed their dog as their beneficiary while 4% listed their cat!
Generally speaking, a person cannot literally name a pet as a life insurance policyholder. This is because pets are legally considered property and cannot log out of legal documents.
Read more in our related blog story: How to choose a life insurance policyholder.
AVAILABLE AND FLEXIBLE INSURANCE COVER  "As with all types of insurance, what is right for your neighbor may not be right for you," said Lou Colaizzo, Senior Vice President, Erie Family Life. "Your agent can help you determine the best life insurance policy for you and your family based on your individual circumstances and needs."
Erie Family Life offers the right coverage and flexible options, helping you build a policy now and adapt later.
Method: This survey was conducted online by Falls on behalf of Erie Insurance, from July 10 to July 15, 2020, among 650 U.S. residents aged 19 and over. Falls established the sample quotas, designed the questionnaire, formulated the questionnaire responses and handled the overall project. Falls used Dynata (Plano, TX) to administer the survey via the Internet, including mobile devices, to Dynata's captured U.S. panels that met age, gender, income, and regional demographic criteria.
** ERIE® Life Insurance Products and Services Provided by Erie Family Life Insurance Company (Home Office: Erie, Pennsylvania). Erie Family Life Insurance Company is not licensed to operate in all states. Go to erieinsurance.com for information on business licenses. Life insurance products are not available in New York. The insurance products and prices, where applicable, described in this article apply from 9 September 2020 and are subject to change at any time. Prices for a particular product will be determined by insurance at the time of application.