Life Insurance Is More Valuable Than You Think

Life Insurance Is More Valuable Than You Think

by | August 4, 2021

Life Insurance Is More Valuable Than You Think

Many Americans don’t think about a fundamental truth when it comes to life insurance: You can’t get it when you need it. You have to plan for the future and buy it before the need is there.

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

That said, a new report “Black Americans: Life Insurance Ownership and Attitudes” shows that the Black Community is ahead when it comes to understanding the importance of having life insurance, particularly for covering final expenses.

The report, a supplement to the 2021 Insurance Barometer Study conducted by Life Happens and LIMRA, also highlights misconceptions surrounding the true benefits and cost of life insurance that persist.

Motivation for life insurance is high:

The pandemic showed that a third (31%) of people said they are more likely to buy life insurance this year because of the wake-up call COVID has given. Within the Black community, that number is even higher: 38%. This shows that Black Americans want life insurance and are especially motivated to get it.

  • Black Americans own life insurance at a higher rate: 56%; in the general population that number tops out at 52%
  • 75% of Black Americans say they need life insurance
  • Of those in the Black community who do have life insurance, 14% say they need more coverage
38% of Black Americans say COVID-19 has made it more likely they'll purchase life insurance in the next year.
30% of Black Americans are currently looking for a financial professional.

Knowledge can turn motivation into action:

Misconceptions around life insurance persist among all Americans, but the good news is many are looking for help with their financial and insurance needs so they can act on their motivation to buy life insurance. The incidence of seeking help from agents and advisors is higher among Black Americans.

  • 75% of Black Americans overestimate the cost of life insurance
  • 1 in 3 Black Americans are looking for help with their financial and insurance needs, which is 5 points above the general population
  • Nearly 6 in 10 Black Americans report they use social media as a source of financial information

Life insurance is more valuable than many think:

Black Americans understand and appreciate what life insurance can do immediately following a death—much more than the general population—but may not know about the “living benefits” of life insurance and the ability to build multigenerational wealth.

  • 66% of Black Americans say that a major reason to own life insurance is to pay for burial and other funeral expenses. For the population in general, it’s less than half (48%)
  • Less than a third of Black Americans cite the need to cover lost wages/income (31%) or mortgage/rent (32%) as reasons for owning life insurance.
  • More Black Americans report concern about saving for an emergency, reducing student loan debt, leaving an inheritance, and paying monthly bills than Americans overall
66% of Black Americans say that a major reason to own life insurance is to pay for burial and other funeral expenses.

The full 2021 Insurance Barometer Study and this new report “Black Americans: Life Insurance Ownership and Attitudes”, 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.

Complete the form below to download the Engaging the Black Community With Life Insurance Marketing Guide. Consider this your go-to as you explore the new content and plan your ongoing outreach to the Black community.

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.

Discover more

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

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Life Insurance Is on People’s Minds

Life Insurance Is on People’s Minds

by | 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

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.

Discover more

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

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COVID Has Changed Americans’ View of Life Insurance

COVID Has Changed Americans’ View of Life Insurance

by | 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.

Barometer 2021 Graphics

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.

Discover more

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

Share

Life’s New Appreciations

Life’s New Appreciations

by | February 2, 2021

Life’s New Appreciations

We uncovered new data that shows traditional milestones are continuing to shift as Americans enter 2021 with a new outlook on life, love and life insurance.

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

Key findings

  • 71% of Americans value the little things in life more than ever because of the COVID-19 pandemic.
  • 3/4 of Americans said it’s important for them to get their finances in order this year.
  • 58% of Americans said COVID-19 has drastically changed which milestones they’d like to accomplish in life.
  • Over half (55%) of Americans said this past year was the first time they spoke with a loved one about life insurance.
  • The top discussions regarding life insurance and end of life plans last year included:
    • The need for their significant other to buy a life insurance policy (40%).
    • Reviewing their existing life insurance policy (37%).
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.

COVID-19 Sparks a Small-Win Revolution

In an effort to make the most of each day, Americans are pursuing small wins, including speaking to their families more (45%), speaking their minds more truthfully (43%), and taking more vacation time when it’s safe to do so (42%). Four in 10 (41%) respondents also shared that they plan to be more confident and express themselves creatively as a part of this small-win revolution.

Financial Security Vital in 2021

While COVID-19 has ushered in a more considerable emphasis on small wins, Americans are still focused on big life decisions during this time. In fact, 58% of respondents said the pandemic has drastically changed the milestones they’d like to accomplish in life, with three-quarters (75%) of those polled saying it’s important for them to get their finances in order in 2021. For the second year in a row, financial security ranked as the most important milestone to achieve.

• 3/4 of Americans said it’s important for them to get their finances in order this year.
55% of Americans said this past year was the first time they spoke with a loved one about life insurance.

Gather Round, Let’s Talk Money

With finances top of mind, life insurance has become a popular discussion topic over the last year – and for some, a discussion topic for the first time. There was a 9% decrease for life insurance to be avoided at the dinner table (27% in 2021 vs. 36% in 2020). Over half (55%) of respondents said this past year was the first time they specifically spoke with a loved one about life insurance. This was particularly true among millennials – with 65% agreeing with this statement.

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.

Discover more

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

To see last year’s data go to “The New American Milestones” survey.

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