The life insurance gap
Many Americans bought term life insurance thinking they wouldn’t need coverage by the end of the term.
- They’d have enough money to retire
- Their families wouldn’t need to depend on their income
Now that their term policies are coming to an end, especially if they’ve had a change in health status:
- maintaining their lifestyle is not as easy as they’d thought
- they may be scared for their family’s future
They realize that they need to continue their coverage, but
- buying new term, especially if they’re less healthy, can be prohibitively expensive
- converting to permanent insurance can be prohibitively expensive
- selling their policy either gets no buyers or a very low offer, because they’re not old or sick enough
They cannot bridge the gap between their current policy and future stability.
They let their policy lapse because they think they are out of options.