Americans value life insurance coverage, but many don’t have it
September 15, 2015 by Dan Cook
Three quarters of Americans believe life insurance coverage represents a critical piece of financial security. Two-thirds say it delivers peace of mind. One third tell themselves they ought to be investing more in life insurance.
Yet only 49 percent actually have a life insurance policy.
These are the key takeaways from a survey of more than 2,000 U.S. adults paid for by Lincoln Financial and executed by Whitman Insight Strategies. Dubbed the MOOD poll — for Measuring Optimism, Outlook, and Direction — the survey team concluded that, while people recognize life insurance’s value, it is still not on their daily list of must-do action items.
“Clearly Americans see the importance of life insurance, yet it’s often viewed as a longer term safety net, and therefore not always considered on the list of day-to-day financial priorities,” said Mark Konen, president, Insurance and Retirement Solutions, Lincoln Financial Group.
Delving deeper into the survey results, here are some tidbits:
- 35 percent of consumers believe life insurance provides immediate benefits;
- Life insurance owners are significantly more likely than non-owners (75 percent vs. 64 percent) to feel “in control”;
- Consumers spend only 1 percent of their monthly household budget on life insurance while spending nearly 3.5 times as much on entertainment and restaurants;
- 41 percent of millennials and 37 percent of Gen Xers think they should be putting more money towards life insurance;
- Of those who own life insurance policies, 51 percent purchased them through an agent/advisor, 32 percent through their work, and 17 percent got it through both.
Originally posted on BenefitsPro.com
