New NAIC Survey Shows Most Life Insurance Beneficiaries Aren’t Ready for their Roles
Overall, just 39% of Baby Boomers (ages 56-74) surveyed say they feel they are prepared for their roles as life insurance beneficiaries. This drops off among younger beneficiaries. Just 30% of Millennials (ages 24-39) and only 22% of Gen Zs (ages 18-23) surveyed say they are equipped.
"There is a life insurance preparation gap, and it's not the buyer who's unprepared—it's the beneficiary," said
Unclaimed Benefits: An Issue with Big Impact
Half of all those surveyed said they are listed as a beneficiary on a friend or relative's life insurance policy. But some people don't know about the policies at all. Overall 21% of Gen Zs and 20% of Millennials say they don't know whether or not they're named as a beneficiary.
"Knowing you're the beneficiary is just the start. Information about the policy and coverage is important," according to Farmer. "It's helpful to think of it in three parts: who, what and where. Who is the carrier? What is the benefit amount? Where is the policy stored? Having this basic information will save time and help to ensure the benefits are paid."
When it comes to knowing basic policy information, there are generational differences. Just 23% of Gen Z beneficiaries know where the policy is kept compared to 29% of Millennials and 41% of Baby Boomers. But the majority of all respondents still lack other basic information. Less than a third of respondents (29%) know the name of the insurance company and only a quarter know the benefit amount.
Closing the Preparation Gap
As part of its role in educating consumers about insurance, the NAIC developed a Life Insurance Policy Locator tool which has helped consumers claim more than
Survey Methodology
More than 1,000 consumers were surveyed online using SurveyMonkey between
About the NAIC
As part of our state-based system of insurance regulation in
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