Seeking Financial Security? Get Life Insurance

Seeking Financial Security? Get Life Insurance

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The 2022 Insurance Barometer Study, conducted annually by Life Happens and LIMRA, shows that financial security is a concern for all generations, but it can be addressed with a stronger understanding of life insurance and its value.

Life Insurance
Life Insurance


Life insurance provides a way to feel financially secure, yet the gap in need of life insurance is greater than ever. This is mainly due to not being knowledgeable about life insurance – whether cost-focused or uncertainty about who qualifies. It is also heightened by our tendency to avoid the difficult conversations about death that lead to obtaining life insurance and actively setting an end-of-life plan. When taken together, this allows uncertainty and a lack of avoidance coverage – and the resulting financial insecurity – to continue.

Financial insecurity is a multi-generational problem that life insurance can solve

Our research shows that financial insecurity persists across most demographic groups, yet one behavioral factor appears to significantly reduce financial insecurity among our respondents: life insurance ownership.

Life insurance is a means of taking personal responsibility for establishing financial security for your family, so that you can have the peace of mind that they will always be supported. Findings show that life insurance offers a clear path to financial security, with 68% of respondents with life insurance policies reporting that they feel financial stability, compared to only 47% for those not having life insurance. in comparison.

Despite this, there are still 106 million adults who need life insurance or more life insurance coverage, widening the gap in need—in other words, between how much coverage people have versus what they say. gap. Biggest ever.

Knowledge about life insurance costs persists

Nearly half of respondents in this year's Insurance Barometer study say they are somewhat knowledgeable about life insurance.

The top reasons people give for having no or not enough life insurance are the same across the board: expenses, other financial priorities, and uncertainty about the type and amount of coverage to get. In fact, 80% of people overestimate the cost of a life insurance policy, with half believing it is three times more expensive than it actually is.

Uncertainty is driving us to avoid important conversations

Obviously, most of us don't want to talk about death. But that avoidance results in a general reluctance to have important conversations with our families about end-of-life plans. Because many Americans are putting off these difficult conversations with their loved ones, they haven't prepared for the potential loss to the primary wage earner.

According to our research, 40% of respondents say that talking about death causes discomfort.

At the same time, 1 in 10 people say that if the main breadwinner of their household dies, they will experience financial crunch within a week.

44% say it will take less than six months to feel financial pressure.

Overall, only 1 in 5 people say they have a safety net for five years or more.

These figures tell a bitter reality. Many of us, figuring out how to navigate an incredibly difficult and emotional time in our lives, will soon be burdened with financial pressures.

Immediately after the loss of a loved one should be a time to grieve, not a time to worry about your financial situation. Therefore, it is necessary to take steps in the interest of the future of your family.

how to take action

Life insurance is the foundation of any sound financial plan, and results show that it provides people with the sense of security and peace of mind that many of us are looking for, especially after the last two years. For many people the lasting effects of being at the forefront and serve as a clear reminder of the importance of preparing for what you can control.

In this year's study, more than half (53%) of all respondents say they are more health conscious now. However, the pandemic does not have the same level of impact on end-of-life planning – only 24% of respondents say it forced them to discuss end-of-life scenarios with their families. Our data also shows that the number of people who made changes to benefit their personal health is twice as many to benefit those they can leave behind.

End-of-life planning is an important component of establishing a comprehensive path toward long-term health and well-being for your family. Many of us are more comfortable discussing life scenarios that focus on health and longevity, and these can help us initiate conversations with our loved ones more effectively.

It is important to let go of past discomfort

These conversations are difficult but necessary. Data shows that 31% of people say they are more likely to buy life insurance in 2022. Will you join them?Time is needed to take control of the now and set up your family for the future – and it's easier and more cost-effective than you might think. A phone call, visiting a professional or visiting our life insurance requirement calculator can make a world of difference to your family's long-term financial health.

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