Owning Life Insurance Provides a Clear Path to Financial Security

by Devin Pascoe | April 25, 2022

2022 Insurance Barometer Study

Owning Life Insurance Provides a Clear Path to Financial Security

The 2022 Insurance Barometer Study, conducted annually by Life Happens and LIMRA, reveals that financial security is a concern for all generations, but one that can be addressed with a stronger understanding of life insurance and its value. Still, misconceptions around life insurance persist among consumers, with 80% overestimating the cost of a life insurance policy. This problem is also exacerbated by a general discomfort with end-of-life discussions surrounding death and financial planning, allowing the life insurance need gap to persist.

For more information on this study, view our press release.

Establishing financial security is a challenge spanning all generations

Financial insecurity is highest among Gen X (49%), followed by Millennials (44%), Gen Z (42%), and Baby Boomers (33%). And according to the survey, most households have not prepared for the loss of a primary wage earner.

1 in 10 respondents report they’d feel financial strain in one week if their household’s primary earner died
Over 2 in 5 parents say it would take less than six months for financial hardship to set in
Only 1 in 5 respondents say they have a safety net of five years or more

Most people aren't prepared financially for the death of a primary wage earner

106 million adults are in need of life insurance--or more of it

We know we need life insurance, yet the need gap persists

Life insurance is a key element in feeling financially secure, yet the need gap – what people have vs. what they say they need – is at an all-time high (18 points) and more than double what it was 12 years ago.

68% of life insurance owners feel financially secure compared to just 47% of non-owners

The unmet need for coverage rose significantly with the pandemic and remains elevated in 2022, revealing the lasting impact of COVID is still felt by many.

31% of respondents say they are more likely to buy life insurance in 2022

A lack of knowledge may lead some to avoid important conversations

Consumers, especially Millennials and Gen Z, report feeling uncertainty about life insurance, which may be why some haven’t gotten coverage.

Almost half (42%) of respondents say they are somewhat or not at all knowledgeable about life insurance
Millennials (16%) and Gen Z (16%) are more likely than other generations to say they would not qualify for coverage, which is often not the case.

At the same time, respondents are largely uncomfortable talking about end-of-life planning with their loved ones, revealing the importance of education and the need to reframe conversations about life insurance to focus on long-term health and wellness in order to build trust and close the need gap.

40% say they are uncomfortable with end-of-life discussions

The full 2022 Insurance Barometer Study is available to Life Happens member companies and can be accessed here. If you have issues accessing it, please contact Erik at esvensson@lifehappens.org. For media inquiries, contact lifehappens@kwtglobal.com.

We’re committed to educating Americans about life insurance

At Life Happens, we establish and lead several annual campaigns, including Life Insurance Awareness Month and the Help Protect Our Families campaign, to help people overcome perceived barriers and motivate them to purchase life insurance to protect their loved ones financially. Check out our free Life Insurance Needs Calculator to evaluate your own coverage needs and take action.

Discover more

For more information on this study and its methodology, view our press release.

Interest in Life Insurance Stays Strong

by Natalie Chambliss | March 25, 2022

Interest in Life Insurance Stays Strong

New data shows that half of American adults (50%) say they have life insurance and that COVID continues to drive interest in securing coverage, according to initial findings from the 2022 Insurance Barometer Study, by Life Happens and LIMRA.

Nearly 1/3 of people (31%) say COVID-19 has made it more likely they’ll purchase life insurance within the next 12 months. When looking at interest by age or race/ethnicity, it is highest among Millennials (44%), Black Americans (38%) and Hispanics (37%).

Purchase intent is also at a record high: 37% of Americans say they plan to buy life insurance this year.

Need Gap

In addition, 41% of those surveyed say they need life insurance—or more of it. (That equals 106 million adult Americans). Those who are younger are most likely to believe they have a coverage gap: 47% of Millennials and 49% of Gen Z say they need (or need more) life insurance. In addition, 44% of women believe they have a need gap.

Life insurance is critical for many, as 4 in 10 households say they’d face financial hardship in six months if a wage-earner died. Nearly a quarter say they would struggle financially within a month.

For more on these initial findings, watch this video with Faisa Stafford, president and CEO of Life Happens, and David Levenson, president and CEO of LIMRA, LOMA and LL Global.

Stay Tuned

The full 2022 Insurance Barometer Study will be available on April 25. In addition, there will be a comprehensive supplement published in early summer covering Hispanics’ perception about life insurance, motivations for buying coverage, financial priorities and more.

In the last decade, the Hispanic population in the U.S. has grown 23% to 62.1 million. Their collective wealth has also skyrocketed, up 87% from 2010 to $1.9 trillion.

And according to this year’s Barometer Study, six in 10 Hispanic adults are uninsured. But, they are keenly aware of the importance of life insurance, with seven in 10 saying they need life insurance and 42% say they plan to buy within the next year, which is higher than any other race or ethnicity.

We’re committed to educating Americans about life insurance

At Life Happens, we created and coordinate several campaigns, including Life Insurance Awarenes Month, every year to motivate people to purchase life insurance to protect their loved ones financially. To take action for your loved ones, we have a free Life Insurance Needs Calculator to help evaluate your own life insurance needs.

For Love and Money

by Devin Pascoe | February 1, 2022

For Love and Money

American relationships are changing, and finances are playing a key role. In fact, the new study “For Love and Money” from Life Happens found that those in a relationship are talking openly about their finances even before saying “I love you.”

And people are attracted to partners who can plan ahead—and that includes financial preparedness, with 4 in 10 describing financial security as one of the most attractive traits to have in a romantic partner.

For more information on this study, view our press release.

Key findings

67% of those in a relationship agree there is nothing sexier than saving money.
59% would feel more secure in their relationship if they discussed getting life insurance with their partner, and 51% say the right time to do that is before marriage.
74% said it took between one and eight months to be comfortable talking about their finances with their partner, while in that same period, only 42% would say “I love you.
42% describe financial security as one of the most attractive traits to have in a romantic partner.

Top 5 Most Important Milestones to Achieve in2021

• 58% of Americans said COVID-19 has drastically changed which milestones they’d like to accomplish in life.

Falling head over heels, but maybe not so traditionally

The majority (70%) said they discussed (or will discuss) getting married with their partner less than a year into a relationship.
80% believe it’s more socially acceptable today for women to earn more than their male partners, and 77% don’t think relationships need one “breadwinner” anymore.
61% believe it’s no longer a “relationship requirement” to have a joint bank account when you’re married.
64% say they’d rather talk about finances with their partner than discuss having children.

Finances are big in a relationship

72% are willing to assist with paying down their partner’s debt.
Finances are also factoring into how people show their love, with respondents saying they do so by saving money (24%) and budgeting (23%).
When asked what financial decisions would demonstrate their love to someone, 36% said purchasing a life insurance policy, with men more likely to say that than women (40% vs 33%).
But there are still taboos. The most taboo financial topics to talk about with your partner were prenups (31%) and joint bank accounts (21%) and the least taboo was life insurance (2%).

• 3/4 of Americans said it’s important for them to get their finances in order this year.

Discover more

To source this study, please use: “For Love and Money,” Life Happens, Jan. 2022

For more information on this study and its methodology, view our press release. And for media inquiries, contact lifehappens@kwtglobal.com.

We’re committed to educating Americans about life insurance

At Life Happens, we created and coordinate the Insure Your Love campaign every year to motivate people to purchase life insurance to protect their loved ones financially. To take action for your loved ones, we have a free Life Insurance Needs Calculator to help evaluate your own life insurance needs.

Life Insurance Is on People’s Minds

by Natalie Chambliss | April 12, 2021

2021 Insurance Barometer Study

Life Insurance Is on People’s Minds

The 2021 Insurance Barometer Study, by Life Happens and LIMRA, shows that while myths around life insurance persist, COVID-19 has shown people that they have a clear need for life insurance, with the industry making it easier than ever before to obtain coverage. In fact, 31% of consumers said they are more likely to buy life insurance because of the pandemic.

For more information on this study, view our press release.

There is a heightened awareness of the need for life insurance

59% who don’t own life insurance say they need it
31% say they’re more likely to buy life insurance because of the pandemic
48% of Millennials say they plan to buy coverage in the next year
42% of Americans would face financial hardship within 6 months if the primary wage-earner were to die unexpectedly

Awareness has led some to take action with 13% of consumers saying they purchased life insurance for the first time in 2020.

31% say they're more likely to buy life insurance because of the pandemic.

The majority of people overestimate the true cost of life insurance by 3x or more.

Myth-Busters

According to the survey, about a quarter of people accepted five common myths and misconceptions about life insurance. Some of the top reasons they have for not owning life insurance (they can choose more than one)

81% – It’s too expensive
75% – Have other financial priorities
65% – Not sure how or what type to buy
62% – Haven’t gotten around to it
51% – Don’t like thinking about death

One of the biggest myths around life insurance is that it’s expensive, but the majority of people overestimate the true cost of life insurance by 3x or more and 44% of Millennials thought the cost of term life insurance policy was more than $1,000 a year when it’s closer to $160.*

Easier to Get

Another misconception is that it’s difficult to obtain life insurance, and so people procrastinate. But in response to the pandemic, life insurance companies have pivoted to help consumers expedite the buying process online, from their homes. They are also streamlining the process with simplified underwriting, which influences the consumer’s likelihood to buy coverage: 48% say they are more likely to buy via simplified underwriting, with the top benefits of this process being that it is fast and easy (64%) and avoids the medical exam, blood and urine samples (56%).

The data shows that people don’t regret purchasing life insurance – in fact, they regret not purchasing it earlier: 39% say they wished they’d purchase their life insurance at a younger age.

48% say they are more likely to buy via simplified underwriting.

The full 2021 Insurance Barometer Study is available to Life Happens member companies and can be accessed here. If you have issues accessing it, please contact Erik at esvensson@lifehappens.org. For media inquiries, contact lifehappens@kwtglobal.com.

*20 year, $250,000 level term life insurance policy for a healthy 30-year-old

We’re committed to educating Americans about life insurance

Discover more

For more information on this study and its methodology, view our press release.

COVID Has Changed Americans’ View of Life Insurance

by Natalie Chambliss | March 22, 2021

COVID Has Changed Americans’ View of Life Insurance

New data shows that nearly one-third of consumers (31%) say COVID-19 has made it more likely they will purchase life insurance within the next 12 months, according to initial findings from the 2021 Insurance Barometer Study.

For more information on this study, view our press release.

In addition, 22% of Americans with life insurance (29 million) believe they need more, while 59% of those without life insurance say they do need coverage, which represents 73 million Americans. That means 102 million Americans say they need coverage, or more of it.

This year, the annual “tracking” study, which has been conducted jointly by Life Happens and LIMRA over the past 11 years, also explored how the pandemic has shaped attitudes toward life insurance.

Millennials (ages 22-40) seem to be most influenced by the pandemic when it comes to life insurance, with 45% of them saying they are more likely to buy it due to COVID-19, while 31% of Gen Xers and 15% of Baby Boomers said the same.

Watch as Faisa Stafford, LUTCF, president and CEO of Life Happens, and David Levenson, president and CEO, LL Global, LIMRA and LOMA, discuss initial findings from the 2021 Insurance Barometer Study.

These are just initial findings, with the full 2021 Insurance Barometer Study being released on April 12.

Complete the form below to download the social-media graphics that highlight these findings and support this industry initiative.

We’re committed to educating Americans about life insurance

Discover more

For more information on this study and its methodology, view our press release.

« Older Entries

Next Entries »