Because they are concerned about the future, Americans are increasingly interested in financial products that provide guarantees, such as life insurance. According to Prudential Financial, Inc.’s report, “Life Insurance – A Guarantee in Uncertain Times,” 70% of those polled believe products with guarantees are worth the cost.
According to Gail Van Dalen, vice president of Individual Life Insurance at The Prudential Insurance Company of America, 94 percent of those who own a life insurance policy value the guarantee it provides. Furthermore, according to Van Dalen, 72 percent of respondents believe the economic downturn has “reinforced and deepened concerns about providing for loved ones.”
“Knowing their family will be protected provides peace of mind in an economy that has left many people feeling uncertain about their investments and financial future,” said Van Dalen.
According to additional findings, consumers value life insurance policy enhancements that go beyond the security of death benefit protection. Early access to policy benefits in the event of terminal illness tops the list, with 61 percent interested in using this feature to pay for medical bills. Other guarantees that pique people’s interest include:
- The ability to waive a policyholder’s premium if he or she becomes disabled (58 percent).
- A one-year premium waiver in the event of job loss (55 percent).
- A higher death benefit if the insured dies in an unforeseeable accident (54 percent).
According to Van Dalen, financial stability (90%) and reputation (82%) are important factors people consider when choosing a life insurance company in the current environment.
Consumers should speak with a tax professional about how these types of benefits may affect their situation. Riders and benefits may differ from state to state.