“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.
The nonprofit LIFE and the professional organization LIMRA launched the Insurance Barometer Study in 2011, with the goal of increasing understanding about consumer attitudes and behaviors regarding a wide range of insurance and financial planning issues. The online study is carried out as a poll by an independent agency of over 2,000 people aged 18 to 75 who make financial decisions for their families.
According to the most recent 2018 study, “90 percent believe a family’s primary wage earner should have life insurance, and three in five adults have life insurance.”
Even more compelling, the study discovered 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, according to a press release about the initial 2011 study. In fact, according to the study, 86 percent of those polled said it was a personal need of theirs.
There are milestones and crises in life that can be very similar because both have an emotional and financial impact on people’s lives. Whether it’s the birth of a child or the dissolution of a marriage, significant life events are major drivers of life insurance demand. The following events frequently shake up a person’s routine life, whether in good or bad ways, and are seen as drivers in the demand for life insurance:
The drivers of life insurance purchase behavior can be found in abundance on the internet, polls, and journals.
The following is a random list of the top ten life events:
1. Purchasing a home
3. Becoming a parent
4. Increase in pay
7. Taking a pension
8. Obtaining a New Job
9. Establishing a business
10. Establishing a family trust
Nobody wants to think about not being there for our families and leaving debt or other problems for our loved ones. There will be financial support if the breadwinner is suddenly no longer available.
“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/