RICHMOND, Va., Dec. 17, 2012 /PRNewswire/ --For those who think life insurance isn't for them, it turns out they may be right – at least partially. A new Genworth white paper, released today, points out that life insurance isn't intended to benefit the consumer; it's designed for the loved ones who rely on that person's financial support, both now and in the future.
The paper, titled "Getting Over the Gap: Insights on Life Insurance Coverage in the U.S.," focuses on four major consumer groups that are facing the largest life insurance coverage gaps and stand to benefit the most from an insurance review -- unmarried parents, large families, women and those with certain common health conditions. The paper is based on key insights from Genworth's 2012 LifeJacketSM Study.
"Consumers often believe life insurance costs nearly three times its actual price, and this is a major contributor to the large coverage gap we're seeing in these four groups," said Brian Bulakites, vice president and national sales manager for life insurance at Genworth. "We're working to close these gaps by educating consumers on the importance of a good insurance policy. By addressing these needs now, we're able to help our customers help provide the financial resources to their loved ones that will be lost upon their death."
With tight budgets and busy schedules, life insurance may appear to be an expensive luxury for those with large families. Genworth's white paper outlines a major gap in coverage among adults who have children in their households. Not surprisingly, the pattern of either or both parents lacking life insurance is exacerbated by lower income and larger families.
The white paper also looks into the differences between married and unmarried parents. Genworth's 2012 LifeJacket Study revealed that unmarried parents are significantly less likely to have life insurance than their married counterparts, despite their clear need for coverage. The research shows that 59 percent of unmarried women are without insurance, compared with 43 percent of those who are married. For fathers, this gap is even larger, with 69 percent of unmarried fathers lacking insurance, compared with 34 percent of married fathers.
Genworth found that women have less life insurance coverage than men, although they often play an important financial role in their families. In fact, 43 percent of married mothers lack life insurance, compared with just 34 percent of married fathers[i]. With the majority of working wives expected to earn more than their husbands in the next generation[ii], it's important that women have the right amount and type of life insurance to help keep supporting their loved ones even after they're gone.
Consumers with common health concerns
According to Genworth's white paper, many consumers believe the best time to buy life insurance is when they're in optimal health. But affordable life insurance coverage is becoming more accessible for those who have been diagnosed with certain health conditions, thanks to advanced underwriting practices. In fact, many commonly diagnosed health issues – like asthma and depression – are no longer barriers to receiving preferred rates on life insurance, which is helping financial professionals close the gap for this group.
It is important for all adults to review their life insurance coverage annually, even for those who don't fall into one of these categories. Genworth's white paper includes a checklist that can help consumers identify changing needs and which financial obligations should be covered by a policy. The checklist is a great starting point for determining life insurance goals and can help get the conversation started with a financial professional. For more information, please visit genworth.com/lets-talklife.
About Genworth's 2012 LifeJacket Study
The LifeJacket Study of the uninsured in America was conducted in collaboration with independent third party research firms, J&K Solutions and Ruf Strategic Solutions. The supporting survey data for this longitudinal, multi-modal study was collected over the course of 15 months and administered by telephone, online and mail. More than 25,000 adults (ages 18+) across the United States were surveyed, providing a highly stable and reliable data source. This allowed for estimates of the percent of uninsured U.S. adult population within +/- 5% with 95% confidence.
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 insurance holding company dedicated to helping people secure their financial lives, families and futures. Genworth has leadership positions in offerings that assist consumers in protecting themselves, investing for the future and planning for retirement -- including life insurance, long term care insurance, financial protection coverages, and independent advisor-based wealth management -- and mortgage insurance that helps consumers achieve home ownership while assisting lenders in managing their risk and capital.
Genworth has approximately 6,300 employees and operates through three divisions: Insurance and Wealth Management, which includes U.S. Life Insurance, Wealth Management and International Protection segments; Global Mortgage Insurance, which includes U.S. and International Mortgage Insurance segments; and the Corporate and Runoff division. Its products and services are offered through financial intermediaries, advisors, independent distributors and sales specialists. Genworth Financial, Inc., which traces its roots back to 1871, became a public company in 2004 and is headquartered in Richmond, Virginia. For more information, visit genworth.com. From time to time, Genworth Financial, Inc. releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the "Investors" section of genworth.com.
[i] Source: Genworth's 2012 LifeJacketSM Study
[ii] Source: Women, Money and Power, Time Magazine, March 26, 2012
SOURCE Genworth Financial, Inc.