The Insurance Barometer is an annual study that tracks the perceptions, attitudes, and behaviors of U.S. adult consumers, with a particular emphasis on life insurance.
According to the 2022 Insurance Barometer Survey, conducted jointly by the industry trade associations Life Insurance Marketing and Research Association (LIMRA) and Life Happens, owning life insurance is a key element in feeling financially secure. Faisa Stafford, president and CEO of Life Happens, even stated that, “Life insurance is the foundation of any strong financial plan, and our results show it provides people with a sense of security that many are looking for, especially after the [COVID-19 pandemic].”
In fact, the study found that 68% of life insurance owners reported feeling financially secure compared with 47% of non-owners. Additionally, 78% of respondents said they felt secure if they had life insurance from both their employer’s group benefits and individual coverage, making them the “most secure” group surveyed.
The study also concluded that the COVID-19 pandemic appears to have lifted purchase intent (aka buyer intent), once again proving that this public health crisis has completely reshaped various industries. As a result of the pandemic, approximately 31% of consumers are now more likely to buy life insurance to feel more secure, both financially and in terms of general health and wellness.
However, there are still over 100 million people in the country who don’t own enough life insurance. This figure is concerning because the number of new policy directives designed to stimulate growth is at its highest since 1983. As a result, many industry experts still believe that the industry has a way to go to ensure that American families are well protected and kept financially secure.
Unfortunately, the study also shed some light on many of the financial hardships facing the average American household today. About 2 in 5 parents said they are “barely” or “not at all” financially secure. Since most households have not prepared for the loss of the primary wage earner, this is a frankly alarming figure. In fact, 44% of respondents said it would take less than six months to feel financial hardship if they were to lose their primary wage earner.
In conclusion, the study found that owning life insurance was a cornerstone of any sound and sensible financial strategy, particularly in the long run. Although there is growing demand from consumers, there is also trepidation. For instance, researchers identified four primary misconceptions that consumers have about life insurance: 1) It’s too expensive, 2) workplace life insurance is enough, 3) it’s too hard to buy life insurance, and 4) life insurance is only needed for older consumers. Of course, these are all not true.
At CoPower, we proudly offer employee ancillary benefit solutions to meet the growing demand from U.S. workers for life insurance while helping companies attract and retain the best talent.
Contact your Amwins Connect Sales Representative to learn more about the types of voluntary benefits we offer, including our bundled benefit offerings that can be customized to a company’s particular needs!