According to the company, consumers under 40 are turning to whole life policies rather than other investment vehicles. The poll showed 74 percent of respondents who bought this type of protection said they wanted financial security as quickly as possible. Another 76 percent said they had a desire to get rid of debt with haste.
The survey also showed 35 percent of buyers under 40 said they planned on paying off their premiums as soon as they are able. Michael Ferik, a senior vice president with the life insurance company, said younger generations are looking for security early on in life.
“Perhaps due to the historically high college loan burden carried by today’s graduates, this appreciation of financial security and desire to be debt-free reflects change in attitude from the ‘live for today’ ethos boomers were known for,” Ferik said.
Life insurance is not about death benefits but promoting a better quality of life for all concerned offering an education of more healthy behaviors.
According to LIMRA, whole life (WL) sales remained steady with new annualized premium growing 3 percent in the fourth quarter – the 18th consecutive quarter of positive growth. For the year, WL premium rose 4 percent. WL enjoyed the second biggest increase in absolute dollars in 2013 and represented 35 percent of the total individual life insurance market.
Young shoppers do understand how life insurance works and that it can provide financial security in the future.