WASHINGTON, Sept. 12, 2019 /PRNewswire/ -- A new study commissioned by AALU and the Future of The Industry Working Group identified the majority of Americans believe they need a life insurance policy, and there is a significant need among Americans for life insurance education. The study, the Future of Life Insurance and Beyond, found that 63 percent of Americans believe they either need a policy or are unsure if they do, and nearly half of all Americans believe life insurance (in any form) is very or extremely relevant to their needs.
"There are 70 million Americans that are either uninsured or underinsured. What this survey proves is there is a huge void in awareness and education around the important role life insurance plays in a successful financial plan," said William Shelow, CLU®, ChFC®, CPCU®, LLIF, chairman of the Future of the Industry Working Group, and president and chief executive officer of LifeMark Partners, a life insurance distributor. "Now more than ever, it's crucial that life insurance professionals and financial advisors are providing the education needed for Americans to understand its value and place so they can make informed decisions about their coverage options."
"This study reinforces a growing problem within our industry and our country's financial and retirement security," said Marc Cadin, President and CEO of AALU. "Americans want more education on life insurance, but do not believe they have the tools to do so. I look forward to working with the noble professionals in our industry to help more Americans navigate their financial needs."
The study surveyed 500 Americans between the ages of 25-75 that have never purchased an individual life insurance policy and found that 63 percent of Americans believe they either need a policy or are unsure if they do. The survey also found that nearly half of all Americans believe life insurance (in any form) is very or extremely relevant to their needs, and the majority of Americans (68%) would prefer to buy life insurance from a professional than through an online platform (32%).
Other Key Findings in the Survey Include:
- 44 percent of Millennials and 51 percent of Gen-Xers believe an ideal financial plan would include life insurance.
- The top three reasons given for not owning a life insurance policy are:
- Too expensive
- Already have life insurance through an employer
- Have plans to buy a policy eventually; it just hasn't been a priority
- The most relevant reasons identified for purchasing a policy, in order of importance, are:
- To cover the costs of funeral services/burial/cremation
- To protect loved ones from becoming responsible for debt
- To help loved ones recover from death and support loved ones who are financially dependent.
"When you explain to an uninsured person why other people have bought life insurance, what it does and how it helps protect loved ones, they quickly learn the importance of purchasing a policy," said Shelow. "With the majority of Americans preferring the personal touch of a life insurance professional as opposed to shopping online, together we can all do our part in helping educate America's un- and under-insured consumers."
Survey results are available for review, upon request.
Since 1957, AALU has been the leading organization of financial professionals who provide life insurance and retirement planning solutions for individuals, families, and businesses. AALU has a rich history of success with a single focus on the issues impacting life and annuity products, and the clients its members serve. Headquartered in Washington, D.C., AALU is committed to providing its members with the essential tools and services required to help grow their businesses, serve their clients, and protect the financial and retirement security of the American people. www.AALU.org.
About LifeMark Partners, Inc.
LifeMark Partners exists to leverage partner, carrier and industry resources and expertise to enhance and expand life insurance distribution for the benefit of all stakeholders. As an independent insurance marketing organization, LifeMark is dedicated to the ongoing development and enhancement of BGA partner resources to help undeniably differentiate partner agencies from the competition. Affiliates benefit from some of the most robust service offerings in the market today, including expansive underwriting capabilities, advanced case design support, sales and product benchmarking tools, and turnkey sales and marketing systems. With unparalleled partnership, expertise and access to these industry-leading resources, LifeMark Partners provides affiliates The strength of many. The power of one. To learn more about the qualifications necessary to become a LifeMark partner, visit www.LifeMarkPartners.com or call 410.837.3022.
About the Future of the Industry Working Group
The Future of the Industry Working Group, commissioned by AALU, was established in 2017, to bring together industry leaders to collaborate on key themes, challenges, and growth inhibitors to the retirement security industry to understand how the profession can better serve Americans and where the needs are. The Group is comprised of industry leaders, and the research was carried out by Maddock Douglas.