Survey: Americans maintain life insurance despite economic strain

A monthly survey of consumers' life insurance habits finds that people are maintaining or even increasing their coverage despite the ongoing recession.

In the August version of the First Command Financial Behaviors Index, only 17 percent indicated that they had eliminated their life insurance coverage, compared to 42 percent who actually increased it. Another 29 percent decreased coverage levels.

"Canceling policies to save money during tough times is a move fraught with financial peril. Life insurance serves as a safety net that catches a family when tragedy strikes," said Scott Spiker, CEO of First Command.

Statistics from consulting firm LIMRA International showed that about 68 million Americans have no life insurance, despite the crucial role it can play in the financial stability of many families.

Generally, life insurance experts suggest that workers, especially those with children, should carry coverage equivalent to five to seven years of their annual salary.