American Families Lack Necessary Insurance to Counteract Financial Instability
Chances are, you're not prepared for a financial shock.
In a recent study by CFSI (Center for Financial Services Innovation), many low-income Americans are not well-prepared for an unexpected financial cost and do not have insurance to assist.
Financial resilience is key to financial health, but across all income levels, Americans struggle to deal with surprise costs. While most low to moderate-income families (LMI) rely on savings or friends/family in response to financial shock, very few count on insurance.
“The average consumer thinks life insurance costs three times its actual cost,” Josh Heckathorn, Tomorrow's COO, said.
The price of insurance is the biggest barrier for LMI families, many believing that insurance is beyond their budget, or believe it unnecessary. For those that do have insurance, most are not sure if it is adequate enough to suit their family's needs (hint: if it's through your employer, it's usually not enough to cover the average emergency.)
“Many simply assume it’s too expensive and their money is better spent elsewhere, while unknowingly passing on the opportunity to provide lasting financial protection for their families for perhaps the cost of the monthly Netflix account,” Heckathorn said.
“What really stood out to me is that nearly 80 percent of of LMI consumers in the study said it’s not difficult to make their life insurance payments. So why do so many remain uninsured when it’s actually quite affordable? Because when you’re worried about being able to pay rent for the month or cover the grocery bill, the thought of even exploring what it would cost to buy a term life policy never even enters the minds of most people.”
Tomorrow can help you purchase the life insurance policy that's right for your family. Download our iOS app to discover more.