More Go Without Life Insurance...

Nearly a third of U.S. households have no life-insurance coverage, the highest percentage in more than 4 decades, according to research firm Limra.

About 35 million U.S. households neither own their own life-insurance policies nor are covered under employer-sponsored plans, up from the 24 million, or 22% of households, without coverage in 2004, according to the study this year by Limra, of Windsor, Conn.

The percentage without life insurance is a sign of the financial pressures on middle-income families as the economy struggles.

The rise reflects tight household budgets, loss of employer-provided coverage as a result of layoffs, and cutbacks by some employers in their benefits packages, Limra said.

50% of the respondents in the latest survey said they needed more life insurance, but many haven't bought it because their financial priorities include paying off debt.

Among households with children under 18, 4 in 10 respondents said they would immediately have trouble meeting living expenses if a primary wage earner died, and another 3 in 10 would have trouble keeping up with expenses after several months.

"Clearly, more American families are living on the edge, surviving paycheck to paycheck, and, as our new study suggests, too many are without the safety net that life insurance provides," said Robert Kerzner, president of Limra.
Many survey respondents said they didn't know where to get help buying life insurance.

Almost 8 in 10 don't have an insurance agent or broker. 60% of baby-boomer households would prefer to buy life insurance face to face, while younger generations are interested in gathering information online, the survey found.

In 2009, insurers issued 9.4 million individual life policies in the U.S., about 1 million fewer than in 2004, according to Limra.

Analysts said the industry hasn't solved the puzzle of how best to reach middle-income households in a cost-efficient manner and in a way that enables consumers to feel comfortable making financial decisions.