An annual survey performed by Life Happens and LIMRA shows that financial security is a concern for all generations, but one that can be addressed with a better awareness of the importance of life insurance.
Even if life insurance gives a chance to feel financially secure, the gap between what people need and what they have is widening. This is mainly due to a lack of awareness regarding life insurance, whether it is cost-focused or unsure of who qualifies. Our aversion to having difficult conversations about death, which can lead to proactively purchasing life insurance and establishing end-of-life planning, only serves to compound the problem. Uncertainty and avoidance, when taken together, allow the lack of coverage – and financial insecurity – to endure.
Life insurance helps alleviate the financial worries of future generations.
Life insurance ownership is a behavioral component that considerably minimizes financial instability among our respondents, according to our findings.
Because life insurance is a personal obligation, you may rest easy knowing that your loved ones will be financially secure in the event of your death. Results show that life insurance is a clear path to financial stability, with 68 percent of respondents with life insurance policies in place reporting financial stability, compared to just 47 percent for those who do not have life insurance..
Additionally, over 100 million people need life insurance or more life insurance coverage, which is driving the need gap — the difference in coverage between what people have and what they think they need – to the greatest it has ever been, according to data from the Centers for Disease Control and Prevention.
There is a deficiency of understanding about the cost of life insurance.
Nearly half of those who took part in this year’s Insurance Barometer Study admit that they know very little or nothing about life insurance.
When asked why they don’t have enough life insurance, the most common responses are: the cost, other financial obligations, and a lack of knowledge about what kind and how much coverage to buy. People overestimate the cost of a life insurance coverage by an average of 80 percent, with half assuming it’s three times more expensive than it is in fact.
In the study, 40% of respondents said that discussing death made them uncomfortable.
One in ten persons say that if their primary breadwinner died, they would be in financial difficulties within a week of their death.
In less than six months, 44% of Americans say they expect to be financially strained.
Only one in five respondents claim they have a long-term financial plan in place.
There is a clear truth in these data. While we were coping with a tough and emotional time in our lives, many of us would soon find ourselves weighed down by financial concerns.
In the early aftermath of the death of a loved one, you should not be concerned about your financial status. Rather, you should be grieving. As a result, you must act now to protect your family’s future.
Ways to get things done
Many of us are looking for stability and peace of mind in the wake of the recent financial crisis, and life insurance is a key component in achieving this. For many, the long-term effects of COVID serve as a powerful reminder to be prepared for the things you can control.
More than half (53 percent) of all respondents in this year’s study claim they have become more health-conscious as a result. When it comes to discussing end-of-life possibilities, only 24% of respondents said the pandemic motivated them to do so with their loved ones. Also, our data suggests that twice as many persons made changes to improve their own well-being rather than those of those they might leave behind.
An important part of creating a route to long-term health and well-being for your family is making arrangements for your death. To begin conversations with our loved ones, many of us find it easier to talk about life scenarios that center on our health and longevity.
Discomfort must be overcome.
Conversations like these can be uncomfortable, but they’re necessary. According to survey results, 31% of consumers expect to purchase additional life insurance in 2022. Is this something you’d like to do?
The time has come to take charge and do everything you can to ensure the financial security of your family in the years to come. You and your family’s long-term financial well-being could be greatly improved with just one phone call.