Why Life Insurance Lapse Rates Are Rising Right Now

This year could be a bellwether for the life insurance industry, as many Americans are feeling the pressure of a volatile job market, inflation and rising interest rates. As a result, the number of those reducing coverage or dropping policies altogether is likely to increase.

According to a recent poll by Nationwide, only 39% of Americans rate their financial situation positively. Of those surveyed, 26% said they were decreasing coverage on existing policies or planning to, and 20% had already removed a policy or were planning to within the next six months.