Many Unsure About Permanent Life's Benefits - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Life Insurance News
Topics
    • Advisor News
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
INN Daily Newsletter Hot Off The Wires
Life Insurance News RSS Get our newsletter
Order Prints
March 21, 2018 Life Insurance News No comments
Share
Share
Tweet
Email

Many Unsure About Permanent Life’s Benefits

MINNEAPOLIS, March 20, 2018 – Although most Americans have a strong understanding of the primary need for life insurance within their financial strategy – particularly the death benefit that provides monies to family/loved ones upon death of the insured – many are unaware of the additional living and tax benefits that may be available through permanent life insurance. According to the 2018 Life Insurance Needs Survey* from Allianz Life Insurance Company of North America (Allianz Life®), nearly nine in 10 people (88%) understand the death benefit component of permanent life insurance, yet more than half (51%) are unsure or don’t believe cash value from permanent life insurance can be used to help fund college education, supplement retirement income or assist with other financial needs. Furthermore, a full two-thirds (66%) are unsure or don’t believe benefits paid from life insurance are not taxable.

These misconceptions exist despite the fact that consumers place high value on financial products that can provide these very benefits. When asked what they find most valuable in financial products, 85% of respondents said one that “provides a source of tax-free income in retirement,” followed by 78% who value one that “provides tax-free money for family/loved ones” and 68% who want a product that “provides the ability to use the funds to pay for college.”

While life insurance is not a college funding vehicle and does not provide a source of guaranteed income in retirement, it does provide the opportunity to accumulate cash value. Any cash value in a life insurance policy can be accessed through policy loans and withdrawals income-tax-free that can help supplement retirement income or complement a college funding strategy.

“There is a tremendous opportunity for financial professionals to bridge this education gap about permanent life insurance,  particularly for financial professionals who are just beginning to embrace a holistic planning model that addresses all aspects of their client’s financial life,” said Jason Wellmann, senior vice president of Life Insurance Sales for Allianz Life. “Too many Americans with significant retirement assets are not optimizing their financial strategy because they simply don’t know all of their options.”

 

The survey, which questioned Americans between the ages of 35-60 with an annual household income of $100,000 or more, also found that three-quarters of people who work with a financial professional are discussing sources of tax-free retirement income with their professional. Additionally, a full 70% discuss ways to fund their child’s college education and more than half (52%) talk about financial products that offer low/no interest loans against its cash value. Permanent life insurance is an option that could help meet all of these needs; however, fewer than half of those with a financial professional have permanent life insurance and one-quarter don’t currently have it, but would like to learn more about it.

“Nearly 95% of respondents in our survey said the ability to save enough to retire comfortably was a top priority when planning for their financial future. Americans need a diverse mix of financial products to help them achieve that goal,” added Wellmann. “It’s imperative that all financial professionals have access to a variety of innovative options that can help their clients add both protection and opportunity to their long-term financial strategy.”

 

Older

Sonoma County Supervisor Susan Gorin seeks fire aid from federal officials

Newer

LIMRA SRI Releases Top 20 Annuity Sales Rankings For 2017

Advisor News

  • Social Security Fairness Act increases need for financial advice
  • It’s a new year: How will you reinvigorate your client service?
  • Trump should impose China tariffs, prioritize renewing tax cuts and immigration reform
  • Fewer report having retirement savings than a year ago
  • Paul Brahim becomes 2025 FPA president
More Advisor News

Annuity News

  • Global Atlantic Announces New Registered Index-Linked Annuity
  • AM Best Affirms Credit Ratings of Reinsurance Group of America, Incorporated and Subsidiaries
  • Life insurance and annuity sales: What’s ahead for 2025?
  • Ares Management Raises Over $2.3 Billion of Equity Commitments to Support the Long-Term Growth of Aspida
  • Salt Financial Annuity Index analytics report for 2024
More Annuity News

Health/Employee Benefits News

  • MHS' health equity program, MHS Serves, launches youth mental health partnership
  • New Managed Care Findings from Brown University Reported (Hospital Payment Caps Could Save State Employee Health Plans Millions While Keeping Hospital Operating Margins Healthy): Managed Care
  • Don't hesitate to seek 2nd opinion
  • McCaughey: Shake up U.S. health policy
  • UnitedHealth Group ordered to pay $165 million over deceptive sales practices
More Health/Employee Benefits News

Property and Casualty News

  • Americans' rage at insurers goes beyond health coverage – the author of 'Delay, Deny, Defend' points to 3 reforms that could help
  • California Takes on the Insurance Industry
  • ‘Trying to exist.’ SC bars, restaurants grapple with skyrocketing liquor liability costs
  • CA fires brought reports of insurers canceling home, fire coverage. Can that happen in WA?
  • Americans’ rage at insurers goes beyond health coverage
More Property and Casualty News

- Presented By -

Top Read Stories

  • ‘The View’ host Sunny Hostin’s husband accused in NYC insurance fraud
  • 3 UnitedHealthcare affiliates ordered to pay $165M in Mass. lawsuit
  • Wildfires rage as insurers weigh risk; Liberty Mutual to reduce coverage
  • Globe Life fends off shareholder lawsuits alleging the company misled investors
  • National Life: plaintiff promotes ‘odd theory’ in IUL lawsuit over 0% return
More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Made for markets like this – whatever the market
Index Lock – offer the opportunity to your clients.
Allianz Life Insurance Company of North America.

Expand Your Network at ICMG 2025
Make the connections that matter. Register now for the ultimate networking event!

Press Releases

  • RFP #T02225
  • RFP #T02525
  • RFP #T02425
  • RFP #T02523
  • Financial Forum Slate for April 2025 in Orlando, Florida
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2025 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet