The Secret to Financial Security?
Owning Life Insurance,
Survey Says
InsuranceNewsNet
Press Release
Arlington, Va. and Windsor, Conn., April 25, 2022
According to new findings from the 2022 Insurance Barometer Study,
conducted jointly by nonprofit industry trade associations LIMRA and
Life Happens, 2 in 5 parents say they are barely or not at all
Financially secure. This is increasingly critical, as most households
haven’t prepared for the loss of a primary wage earner…
44% say it would take less than six months to feel financial hardship
if this happened to their family.
Life Insurance Key to Financial Security
Financial insecurity transcends generations and is highest among Gen
X (49%), followed by Millennials (44%), Gen Z (42%), and Baby
Boomers (33%). One way to ease these concerns is life insurance.
Two-thirds (68%) of life insurance owners report feeling financially
secure compared with 47% of non-owners. Those who feel most
secure are people who have life insurance both through the workplace
and through individual coverage (78%).
“Life insurance is the foundation of any strong financial plan,
and our results show it provides people with a sense of security
that many are looking for, especially after the last two years,” said
Faisa Stafford, LUTCF, president and CEO of Life Happens. “The lasting
impact of COVID remains at the forefront for many, with the pandemic
leading almost a third, or 31% of people, to say they are more likely to
buy life insurance in 2022.”
Gender Gaps Extends To Life Insurance Coverage
The need gap for life insurance… what people have versus what they
say they need… is at an all-time high (18 points), more than double what
it was 12 years ago. For the sixth consecutive year, the percentage of
uninsured women has increased. Just 46% of women report owning life
insurance, compared with 53% of men. However, a greater proportion of
women than men recognize they need (or need more) coverage
(44% versus 38%).
Despite their acknowledged need, just over a third of uninsured women
(36%) say they plan to buy life insurance in the next year. The reasons
women give for not having coverage include…
It’s too expensive… 39%
I have other financial priorities right now… 37%
I’m not sure how much or what type to buy… 22%
“There are still over 100 million people in this country who don’t own
enough life insurance” said David Levenson, president and CEO of LIMRA
and LOMA. “And, while new policy growth jumped last year to the highest
levels since 1983, there is still a lot that our industry can do to ensure that
families are properly protected.”
Study Methodology
In January 2022, LIMRA
and Life Happens engaged an online panel to
survey adult consumers who are financial decision-makers in their
households. The survey generated 8,517 responses. The results were
weighted to reflect the adult U.S. population.
Got Insurance?
It is probably much cheaper than you think!
Hayden Childs
Alabama Licensed Agent
(205) 269-1382
I STILL MAKE HOUSE CALLS!
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