Most of the consumers today still do not have a clear idea about life insurance and the perks in store for them. A significant number of policy holders are just happy that they have a coverage that can help them sleep well at night since their family is well protected in case of any misfortune.
Genworth Financial Services, a large financial giant based out of Richmond, Virginia, says that consumers being well informed about life insurance policies is just a myth. One of the latest reports from this financial major has revealed that though most customers claim to know in detail about their life insurance coverage, they really are not. The report also says that, there is so much of misinformation rampant in the industry that most customers end up taking a coverage that is not adequate to cover their needs and that of their family in case any misfortune occurs.
For instance, the report reveals that most of the consumers presume the cost of life insurance coverage to be three times more expensive than its actual cost. Therefore, most consumers who buy life insurance coverage opt for something with lesser financial benefits that what their family requires at the moment.
Genworth’s national sales manager in the life insurance department, Brian Bulakites, states that one of the main contributors to the large coverage gap that is being observed is the fact that most consumers believe life insurance to be very expensive and beyond their reach if they opt for higher financial benefits in their coverage.
The report has unveiled that it is larger families that have a bigger coverage gap as compared to the smaller ones. Large families, with high expenditure and low incomes, are the ones that do not have any life insurance coverage or insufficient coverage.
Most consumers are wrongly informed about the best time to buy the life insurance policy. A majority of them feel that it is best to buy the coverage when they are in the pink of their health, says the report. However, the truth is that there are affordable insurance policies for people who have certain health issues.
