“More than a third of households would feel the financial impact within one month, if the primary wage earner died,” reported LIMRA blog Key Findings for the 2018 Insurance Barometer Study published April 10, 2018 by Maggie Leyes regarding the findings from the LIFE Foundation (Life Happens) and LIMRA International Inc (LIMRA), two associations who work to further the advancement of insurance and financial servicing matters.
In 2011, the nonprofit LIFE and the professional organization LIMRA, began a new survey called the Insurance Barometer Study, to be done annually which was designed to increase understanding about consumer attitudes and behaviors regarding a wide range of insurance and financial planning matters. The online study is executed as a poll done by an independent agency of over 2,000 people aged 18 to 75, who are involved in the financial decision-making for their families.
The most recent study done in 2018 found that “90 percent think a family’s primary wage earner needs to own life insurance and that three in five adults have life insurance,”
Even more compelling, the study found that
A press release regarding the initial 2011 study noted that younger consumers, aged 25 to 44, were the most adamant about obtaining life insurance because they saw it as an essential item to have in life. In fact, the study found that 86 percent polled said it was a personal need of theirs.
In life, there are milestones and crises we encounter which can be very similar because both impact every aspect of people’s lives, emotionally and financially. Whether it’s the birth of a child or the end of a marriage, notable life events are very much drivers in the demand for life insurance. Events such as the below list often times shake up a person’s routine life, whether in good ways or in bad, and are seen to be drivers in the demand for life insurance, and are as follows:
The internet, polls and journals alike are full of the driving factor for why someone buys life insurance.
A random list of the top 10 life events are as follows:
1. Buying a home
3. Having a child
4. Salary increase
7. Accepting a pension
8. Getting a new job
9. Starting a business
10. Funding a family trust
No one likes to think about not being there for our families and leaving behind debt or any kind of trouble for our loved ones. There have been will financially find support if its breadwinner suddenly no longer be there.
“The psychology of a life insurance purchase is very complex, and the results of this new study bear that out,” said Robert Kerzner, CLU, ChFC, president and CEO of LIMRA, LOMA, and LL Global, per the LIFE/LIMRA 2011 press release about the study. “Research like this is important because it provides a better understanding of evolving consumer trends and preferences, like the use of technology and the Internet. We hope that this annual tracking survey will provide insight to companies and producers, enabling them to effectively reach more consumers and increase the number of people owning life insurance.”
Quotes attributed to:
LIMRA news release July 27, 2011 “New LIFE and LIMRA Study Examines Changes in Insurance Planning Attitudes and Behaviors” Retrieved from https://www.limra.com/en/newsroom/news-releases/2011/life-insurance-purchasing-habits-changing-as-one-in-four-consumers-now-prefer-to-buy-direct/
LIMRA blog April 10, 2018 “Key Findings for the 2018 Insurance Barometer Study” by Maggie Leyes Retrieved from https://lifehappens.org/blog/2018-barometer-study/