Arlington, Va. and Windsor, Conn.,
According to new findings from the
2022 Insurance Barometer Study, conducted jointly
by nonprofit industry trade
associations LIMRA and Life Happens, 2 in 5 parents say
they are barely or not
at all financially secure. This is increasingly critical, as most
households
haven’t prepared for the loss of a primary wage earner:
44% say it would take
less than six months to feel financial hardship if this happened
to their
family.
·
* Life Insurance Key to Financial Security
Financial insecurity transcends generations and is highest among Gen X
(49%),
followed by Millennials (44%), Gen Z (42%), and Baby Boomers (33%).
One
way to ease these concerns is life insurance. Two-thirds (68%) of life
insurance
owners report feeling financially secure compared with 47% of
non-owners.
Those who feel most secure are people who have life insurance both
through the
workplace and through individual coverage (78%).
“Life insurance is the foundation of any strong financial plan, and our
results show
it provides people with a sense of security that many are looking
for, especially
after the last two years,” said Faisa Stafford, LUTCF,
president and CEO of
Life Happens. “The lasting impact of COVID remains at the
forefront for many,
with the pandemic leading almost a third, or 31% of people,
to say they are more
likely to buy life insurance in 2022.”
· *
Gender Gaps Extends to Life Insurance Coverage
The need gap for life insurance—what people have versus what they say
they need—
is at an all-time high (18 points), more than double what it was 12
years ago.
For the sixth consecutive year, the percentage of uninsured women
has increased.
Just 46% of women report owning life insurance, compared with
53% of men.
However, a greater proportion of women than men recognize they need
(or need more)
coverage (44% versus 38%).
Despite their acknowledged need, just over a third of uninsured women
(36%)
say they plan to buy life insurance in the next year.
The reasons women
give for not having coverage include:
- It’s too
expensive — 39%
- I have other
financial priorities right now — 37%
- I’m not sure
how much or what type to buy — 22%
“There are still over 100 million people in this country who don’t own
enough
life insurance” said David Levenson, president and CEO of LIMRA and
LOMA.
“And, while new policy growth jumped last year to the highest
levels since 1983,
there is still a lot that our industry can do to ensure that
families are properly
protected.”
Study Methodology
In January 2022, LIMRA and Life Happens engaged an online panel
to survey adult consumers who are
financial decision-makers in their
households. The survey generated 8,517 responses.
The results were weighted to
reflect the adult U.S. population.
