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Update: More than half of U.S. households don't have life insurance | News

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Update: More than half of U.S. households don't have life insurance

This is at a time when adding that little extra protection for your family is at its most affordable.

The question to pose may be can you afford not to have life insurance? Auto and home insurance are a necessity while life insurance is voluntary. It's a decision that can determine your family's financial security in the event of an unexpected death.

State Farm Insurance handles home, auto and life insurance. In their records room there is space for more life insurance policies, but Gary Stephenson hears every reason people decide against it.

He says, "I really can't afford it now, I'll put it off, which really shouldn't be an option."

Unfortunately, economic troubles have taken a toll on family budgets, and life insurance is being sacrificed. This comes as premiums are at their lowest in decades.

"Americans are living longer. So the impact that has on life insurance is that that lowers the cost of life insurance." Stephenson continues, "You're talking about an inexpensive policy and can you afford $20 a month or $15 a month?"

More than 40-percent of U.S. families polled by LIMRA say they haven't purchased life insurance because of more pressing financial concerns. Simultaneously, 40-percent of families who have children under age 18 said they'd have significant financial trouble if the primary breadwinner died.

Stephenson adds, "Life is not guaranteed. We don't know what kind of health we'll be in tomorrow or when the next accident will be. No one plans to be in an accident or have a problem of that nature, it's not a guarantee."

Aside from the sad reality of the times, not having life insurance can backfire, threatening your family's financial foundation. An average burial costs about $10,000, then there's kids' college and maintaining daily bills.

Stephenson concludes, "If something happened to you or your spouse could the other afford not to have that protection?"

If you're interested in getting life insurance, agents will help you pick a policy best designed to fit your budget and family's financial needs.

The survey shows only 44 percent of households have an individual life insurance policy, and 30 percent have no individual or employer-provided life insurance. It goes on to show about 11 million households with children younger than 18 have no life insurance.

LIMRA's survey cites the three main reasons for the decline in purchasing life insurance as the economic downturn, procrastination and fewer insurance agents.