In support of Life Insurance Awareness Month, ING US hasreleased findings from a new consumer study that underscores striking disconnects in attitudes and behaviours toward life insurance.
According to the research, Insurance Revealed, most survey respondents (78%) viewed life insurance as a valuable tool for estate or financial planning, and more than half (53%) believed that the current economy makes life insurance even more important today than in past years.
However, despite recognizing its value and importance, a significant number (51%) cited other priorities, such as paying off debt or a mortgage, as major obstacles to purchasing life insurance. Meanwhile, 61% had never calculated their life insurance needs and only one-quarter of those insured felt extremely confident that they had enough coverage.
The study also showed communication is an area for further opportunity. While 62% identified family as the number one reason to purchase life insurance, many couples confirmed that they avoid discussing the issue. Among married respondents, 45% had rarely or never talked with their spouse about what would happen to the family finances should one of them pass away.
“Life insurance is one of the least discussed components of a family’s financial plan, yet it plays such an integral role in providing for a secure future,” said Butch Britton, ceo of ING US Insurance. “Without candid conversations among spouses, family members and financial professionals, many Americans risk being underinsured and having inadequate coverage in the event of a loss. We hope our study and outreach efforts, especially during Life Insurance Awareness Month, can help initiate the necessary conversations that lead to greater protection and, ultimately, greater peace of mind.”
Meanwhile, the study underscored the important role that the workplace represents in obtaining coverage. Nearly half of insured respondents (49%) said they looked to their employer as the only source for insurance coverage. Employees without access to life insurance benefits at the workplace were seven times more likely to have no coverage at all than employees who did have access.
On another positive note, the ING US study revealed individuals who purchased life insurance face-to-face with a financial professional felt the most confident and knowledgeable about their coverage. Among that group, seven-in-ten (70%) felt very or extremely confident about their coverage compared to just 56% for all insured respondents.
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