Valentine's message on life insurance for loved ones

As Valentine’s Day reminds everyone to spare a thought for their loved ones, a new campaign by the Life Insurance Market Research Association (LIMRA) is helping people remember the importance of protecting those they love.

“The ‘Insure Your Love’ campaign is a great reminder of how important life insurance protection is for loved ones,” the group said.

According to LIMRA research, the majority of people shop for life insurance after a major life event like marriage, childbirth, or a new house purchase for the family. “The life event associated with the highest buying rate is the presence of a new child,” the group said.

Life insurance ownership is on the rise among younger US households, particularly among couples under 45 who have children. However, 4 in 10 Americans say they wish their spouse or partner had more life insurance; 71% of husbands own life insurance, as opposed to just 63% of wives.

LIMRA also noted significant life-insurance gaps in the US. Nearly half of US households (60 million) have an average life-insurance need gap of US$200,000. In addition, recent figures show that Americans have enough life insurance to cover only three years’ worth of household income; that’s declined from 3.5 years in 2010.

“Insufficient coverage has grave consequences for countless families,” the group said. “More than half of consumers say they would have immediate or near-immediate trouble paying for living expenses if their primary wage earner died.”