5 Truths About Life Insurance That Will Surprise You

NEW YORK (TheStreet) -- Too many people seem strangely ambivalent about buying life insurance, and that's a threat to their family's and dependent's financial safety.

According to industry data, 85% of U.S. consumers say they should have life insurance, but only 62% say they actually have it. Also:

  • Life insurance ownership is waning. In 1960, 72% of Americans owned life insurance. By 2010, that figure fell to 44%.
  • 40% of Americans who have life insurance say they don't enough of it.
  • 70% of children 18 and under would have trouble meeting basic expenses if their primary bread-winning parent (especially both) were to die without a life insurance policy.

There's one school of thought that says Americans shy away from life insurance because they just don't understand it, or they don't understand the negative ramifications of not having life insurance -- partially because there are many myths about.

That's the stance taken by Jeffrey McGregor, a certified financial planner and 30-year veteran of the investment and insurance industries, who has five top "surprises" on life insurance to answer those myths:

If you're over age 25, you should buy disability insurance. McGregor says, despite the conventional wisdom, younger Americans should buy disability insurance. "You are five to seven times more likely to become disabled than to die. It's smart to maximize your disability insurance if you plan to stay with your current employer for the long term," he says. "Remember that you can't take it with you if you leave the company."  

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