010924 The secret to financial security? Owning life insurance, survey says...

Arlington, Va. and Windsor, Conn.,

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.

Comments

022823 The 9 Benefits of Whole Life Insurance...

(1) Provide for Loved Ones… It’s the basic need everyone thinks about. You have a young family. You are the major breadwinner. Something happens to you. How is Your family supposed to make ends meet? It’s a form of protection. Peace of mind. (2) Key Man Insurance… You and your partner own a business. It’s grown. Many employees Depend on you. If something happens to your partner, it’s likely their Spouse or family will inherit their share of the business. Cash would Be a lot more useful to them. Life insurance on both partners can Provide the cash to buy out heirs and keep the business intact. (3) Emergency Loans… Hopefully your client lives a long life. The whole life policy accumulates Cash value, eventually growing to the full face value, or beyond. Many Policies allow you to borrow money against the cash value. You would pay interest. (4) Funding Estate Taxes… Your client owns a farm. I...

090921 Those Dying From Covid-19 Are Least Likely to Own Life Insurance...

Many companies have sharply reduced estimates of their exposure, as measured by payouts per 100,000 U.S. fatalities As the number of U.S. corona virus deaths surpasses 200,000, public-health experts point to a series of missteps and miscalculations in the country's response. Here’s a look back at how the U.S. became the center of the global pandemic. Sept. 28, 2020 5:30 am ET U.S. life insurers are paying out far fewer Covid-19 death claims than initially expected, largely because the virus is disproportionately killing people with little to no insurance. In the past few weeks, many life-insurance companies have sharply reduced estimates of their exposure, as measured by payouts per 100,000 U.S. Covid-19 fatalities. Estimates have come down by an average of 40% to 50%, according to Credit Suisse stock analyst Andrew Kligerman. Driving the rapid reduction in exposure are two groups… older Americans and minoriti...

080822 Less Common Life Insurance Needs

On top of the most common reasons for buying life insurance, It can help cover some less common needs. These could include… *Insuring Children Buying a policy on a child can ensure that the family will financially Survive the loss of the child, but keep in mind that such a loss is Fairly unlikely. It can also ensure the child’s ability to qualify for life Insurance in the future. That could be helpful in the case of a health Diagnosis that might make it harder to pass the underwriting process. *Replacing Retirement Benefits Life insurance is often marketed as income replacement for an Insured person during their working years, but some retirees may Choose to keep theirs after leaving work. It can be used to replace The loss of any retirement income for their spouse or any dependents. *Investment Permanent life insurance can provide you with a potential income Source. You can access your cash value once it has buil...

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