A survey carried out by ING U.S. has found
that 78% of its respondents viewed life insurance as a valuable
financial tool – yet 51% of respondents said purchasing a life
insurance policy was not their priority, while 61% had never
calculated their life insurance needs
According to the survey, 62% of people said
their main reason to purchase life insurance was their family.
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However, discussion about it within the
household is low, with 45% of married respondents admitting they
have rarely or never discussed about their finances in the event of
one of them passing away.
Butch Britton, chief executive officer of IGN
U.S. Insurance, said life insurance is one of the least discussed
aspects in a family’s financial planning, in spite of the integral
role it plays in providing for a secure future.
Britton said: “Without candid conversations
among spouses, family members and financial professionals, many
Americans risk being underinsured and having inadequate coverage in
the event of a loss.”
Protection benefits
The survey also showed that people are more
aware of the protection benefits of life insurance rather than its
ability to grow assets
In fact, 53% of respondents said the current
economy makes life insurance even more important today than in past
years.
A total of 26% of the participants viewed life
insurance as a way of replacing lost income. A further 23% saw it
as a way of paying off debt. Only 4% of respondents valued life
insurance as a way of protecting retirement savings, and 1% to
build wealth.
The survey included about 1,000 people aged
over 25 whose household income was over $50,000. It was undertaken
as part of ING’s U.S.’s campaign to educate people about the need
for and benefits of life insurance to mark life insurance awareness
month in September.
