Monday, January 7, 2013

World Financial Group: Life Insurance Myths Lead to Gaps in Coverage

Though many consumers believe that they understand the potential benefits of life insurance coverage, a recent report notes that misinformation about life insurance abounds, which leads many consumers to obtain inadequate coverage. The study, reported by Insurance Networking News, lists several particular groups who are at risk for underinsurance: large families, unmarried parents, women, and individuals with common health afflictions such as asthma and depression. The study was noted by World Financial Group, Inc. (WFG).

WFG and its independent associates believe that it is important to educate clients about the different life insurance options available. Commenting on the study, WFG notes that it is best to know as much as you can about life insurance and be sure to understand your options when it comes to choosing coverage that is right for you and your current situation.

According to the report many consumers do not understand the life insurance options available to them. In particular, many consumers believe that the cost of life insurance is as much as three times the price of what it truly is, which is a major factor in coverage gaps among particular consumer groups.

The study finds that life insurance coverage gaps are common among large families, in which only one parent may carry coverage and, in some cases, neither parent is covered. The reasons for this gap in coverage are misinformation about the cost of life insurance, paired with low incomes and/or the high expenses of raising children. The study also finds that many women, including married women, lack adequate coverage. In fact, 43 percent of married mothers do not have life insurance at all.

WFG's independent associates educate individuals and families about all aspects of life insurance and believe in providing consumers with the information they need to make educated choices.

The study noted in this release was reported by Insurance Networking News on December 17, 2012.

World Financial Group, Inc. is a financial services marketing company whose affiliates offer a broad array of financial products and services. WFG's independent associates, located throughout North America, strive to help individuals and families often overlooked by the financial services industry to plan for their financial futures, advocating the power of choice for clients through agreements with several of the financial and insurance industries' leading companies.

WFG is a business unit of the Life & Protection (L&P) Division of Transamerica. Through L&P, the Transamerica companies offer a wide array of life and health protection solutions with a common purpose: to protect families and their dreams. With more than a century of experience, Transamerica has built a reputation on solid management, sound decisions and consumer confidence.

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