2023 was the first year that consumers said they would prefer to shop and purchase life insurance online versus via in-person meetings.
However, far fewer (24%) consumers would expect to complete their life insurance purchases entirely online than in person (44%).
More and more consumers are using social media to research financial product-related information.
Continue reading “Using Social Media and Purchasing Life Insurance Online”
Women are less likely than men to own life insurance. Just 49% of women own life insurance, compared with 55% of men. This represents the fifth consecutive year of life insurance ownership declines for women.
Only 22% of women feel very knowledgeable about life insurance. In contrast, 33% of men say they are very or extremely knowledgeable about life insurance.
Women were more likely than men to say the major reason they have life insurance is to pay for burial expenses(64% versus 56%). Women were much less likely than men to consider it as a way to supplement their retirementincome (27% versus 20%).
Forty-three percent of uninsured and underinsured women say they need (or need more) life insurance but only39% of women plan to buy in 2023.
Women are more likely to cite having other financial priorities as well as uncertainty over how much or what type to get.
Limra (2023, October 18). 2023 Life Insurance Fact Sheet. LIMRA. https://www.limra.com/en/SysSiteAssets/newsroom/liam/2023/0859-2023-liam-fact-sheet-2023_final.pdf
The top reason people give for not purchasing coverage is that it is too expensive. Yet more than half of Americans overestimate the cost of life insurance three-fold.
More than a third of those without life insurance (36%) say they haven’t purchased it because they are unsure how much they need or what type to buy.
About 23% of consumers view life insurance only for burial and final expenses. This perception could result in not purchasing enough coverage to provide income replacement or enable wealth transfer — two key ways life insurance can benefit loved ones after a wage earner dies.
Limra (2023, October 18). 2023 Life Insurance Fact Sheet. LIMRA. https://www.limra.com/en/SysSiteAssets/newsroom/liam/2023/0859-2023-liam-fact-sheet-2023_final.pdf
The majority of parents (59%) own life insurance, up five percentage points from 2022, and significantly higher than the general population (52%).
Among parents who own life insurance, 56% say the primary reason they own it is to cover burial costs and final expenses, slightly lower than the overall population (60%).
Parents are more likely than the overall population to say they use social media as a source of financial information. The top three sites used are Facebook(71%), YouTube (60%), and Instagram (43%).
Parents turn to financial advisors at a higher rate than the overall population (50%). Parents are also more likely than the general population to be looking to engage a financial professional (28% versus 24%).
Thirty eight percent of parents say they are very or extremely knowledgeable about life insurance, compared to 27% of all Americans.
Limra (2023, October 18). 2023 Life Insurance Fact Sheet. LIMRA. https://www.limra.com/en/SysSiteAssets/newsroom/liam/2023/0859-2023-liam-fact-sheet-2023_final.pdf
In January 2023, 52% of consumers reported owning life insurance (e.g., individual, employer-sponsored, etc.), which is up from 50% in 2022 but down from63% in 2011.
Overall, there are more than 100 million uninsured and underinsured Americans who say they need (orneed more) life insurance coverage.
Thirty-eight percent of Americans say their household would face financial hardship within six months shoulda wage earner die unexpectedly — 30% would struggle financially within a month.
Among life insurance owners, 21% say they do not have enough coverage.
COVID-19 continues to influence people’s interest in life insurance — particularly younger adults:- Fifteen percent of individual life insurance owners say that the COVID-19 pandemic led them to purchase life insurance.- One third of Gen Z adults say COVID-19 was a reason they bought life insurance.
Just 45% of Hispanic Americans report owning life insurance, lower than other racial and ethnic groups. Black and white Americans’ ownership rate is nearly 10 percentage points higher than Hispanic Americans’.
Limra (2023, October 18). 2023 Life Insurance Fact Sheet. LIMRA. https://www.limra.com/en/SysSiteAssets/newsroom/liam/2023/0859-2023-liam-fact-sheet-2023_final.pdf
Whole life insurance is an important financial tool that provides lifelong coverage numerous benefits to policyholders Unlike term insurance, which only offers coverage for a specified period, whole life insurance remains in effect for the entire lifetime of the insured individual. In this essay, we will explore various reasons why whole life insurance is crucial for individuals and their families.
Firstly, whole life insurance offers a death benefit that provides financial security to the policyholder’s beneficiaries upon their passing. This death benefit can be used to cover funeral expenses, outstanding debts, and other immediate financial obligations. It ensures that loved ones are not burdened with these expenses during an already difficult time and allows them to focus on grieving and healing.
Continue reading “Whole Life Insurance Lifelong Coverage”Universal life insurance is an important financial tool that provides individuals with flexibility, coverage, and the potential for cash value accumulation. This type of insurance offers a wide range of benefits and advantages that make it a valuable component of a comprehensive financial plan.
Firstly, universal life insurance offers lifelong coverage, which means that as long as premiums are paid, the policyholder is guaranteed coverage until their death. This ensures that loved ones are protected financially in the event of the insured’s passing, providing a death benefit that can be used to cover funeral expenses, pay off debts, or provide income replacement for dependents.
Unlike whole life insurance, universal life insurance allows for flexible premium payments. Policyholders have the option to adjust the amount and frequency of their premium payments based on their financial circumstances. This flexibility makes universal life insurance accessible to individuals with varying income levels and allows for adjustments as financial situations change over time.
Another key feature of universal life insurance is the potential for cash value accumulation. A portion of each premium payment goes towards the policy’s cash value, which grows tax-deferred over time. This cash value can be accessed by the policyholder through withdrawals or loans, providing a valuable source of funds for various purposes such as paying for education expenses, supplementing retirement income, or covering unexpected financial emergencies.
Furthermore, universal life insurance offers the potential for investment growth. Policyholders have the option to allocate a portion of their premium payments towards investment accounts, such as stocks or bonds. The performance of these investments can contribute to the growth of the policy’s cash value. While there are risks associated with investing, the potential for higher returns can provide individuals with the opportunity to build substantial cash values over time.
In addition to the above benefits, universal life insurance also offers the advantage of transparent cost structures. Policyholders have the ability to see how their premium payments are divided between insurance costs and cash value accumulation. This transparency allows individuals to have a clear understanding of the value they are receiving from their policy and make informed decisions about their coverage and investment options.
Moreover, universal life insurance can serve as a valuable estate planning tool. The death benefit provided by a universal life insurance policy can help individuals preserve and transfer wealth to their beneficiaries. This becomes particularly important for individuals with larger estates who wish to minimize estate taxes and ensure a smooth transition of assets to their loved ones.
Lastly, universal life insurance can provide individuals with peace of mind and a sense of financial security. Knowing that they have a comprehensive insurance policy in place can alleviate concerns about potential financial burdens that may arise in the future. This can allow individuals to focus on enjoying their lives and pursuing their goals without worrying about the financial impact of unexpected events.
In conclusion, universal life insurance offers a range of benefits and advantages that make it an important component of a comprehensive financial plan. Its lifelong coverage, flexibility in premium payments, potential for cash value accumulation and investment growth, transparent cost structures, estate planning benefits, and overall financial security make it a valuable tool for individuals seeking to protect themselves and their loved ones. By considering all these reasons, it is evident that universal life insurance plays a vital role in securing long-term financial well-being and providing peace of mind to individuals and their families.
Term insurance is an essential component of financial planning that provides valuable protection and peace of mind to individuals and their families. This type of insurance offers coverage for a specified period, typically ranging from 5 to 30 years, and pays out a death benefit to the policyholder’s beneficiaries if they pass away during the term. In this essay, we will explore various reasons why term insurance is important and how it can benefit individuals in different stages of life.
Firstly, term insurance serves as a financial safety net for families. In the event of the policyholder’s untimely death, the death benefit provided by term insurance can provide financial support to the beneficiaries, helping them cover immediate expenses such as funeral costs, outstanding debts, mortgage payments, and day-to-day living expenses. This ensures that the family members left behind are not burdened with financial hardships during an already difficult time.
Continue reading “Importance of Term Insurance”