During Life Insurance Awareness Month, Lincoln Financial releases study findings highlighting the disconnect between consumers’ perceptions of life insurance versus its true benefits as part of a comprehensive financial portfolio
“Sixty-five percent of consumers believe life insurance is a necessity and they recognize the core value it provides,” said
According to the study, which polled life insurance owners and those that said they would considering purchasing it within the next twelve months, one of the greatest financial concerns for consumers is the cost of healthcare in retirement. Sixty-six percent of people cited this as a pressing concern, however, only 14 percent of people were aware that life insurance can potentially help offset the cost of healthcare in retirement. Similarly, more than 50 percent of consumers were concerned about outliving their money in retirement with just 11 percent understanding that life insurance can help protect against longevity risk.
“Education on the value of life insurance can come from a few different sources. While some may work with a financial advisor, others might look to their employer for information – some may look to both,” said
Generational Concerns and Differences
Lincoln’s ongoing research shows that consumers are thinking about their finances earlier in life, including the purchase of products like life insurance. For Millennials and Generation X, the strongest trigger for thinking about life insurance is the start of a new job or during annual open enrollment for employee benefits. In contrast, those age 55 and older said their primary motivator for purchasing life insurance was getting married. This finding underscores the importance of life insurance at various stages in life, including younger years when financial priorities may revolve around paying off student loan debt or credit card debt.
“Today’s advisors must educate their clients on the realities of life insurance, and what it can help them to accomplish,” said
After learning life insurance could help cover the potential costs of health care in the future, 49 percent of consumers said they would consider purchasing life insurance. Similarly, while only 18 percent initially believed life insurance was a solution that could offset a loss of household income, 43 percent of consumers said they would consider purchasing it after was this explained to them.
For more information about Lincoln’s Life Market Study, please open this presentation at Lincoln’s website.
Lincoln Life Market Study
Lincoln’s Life Market Study results are based on research conducted by Whitman Strategies on behalf of