Arlington, Virginia and Windsor, Connecticut, April 25, 2022―According to new findings from the 2022 Insurance Barometer study, conducted jointly by non-profit trade associations LIMRA and life happens, 2 out of 5 parents say they are barely or not at all financially well off. This is increasingly critical as most households have not prepared for the loss of a primary breadwinner: 44% say it would take less than six months to feel financial hardship if it happened to them family.
Life insurance is the key to financial security
Financial insecurity crosses generations and is highest among Gen X (49%), followed by Millennials (44%), Gen Z (42%) and Baby Boomers (33%). One way to allay these concerns is life insurance. Two-thirds (68%) of life insurance holders report feeling financially secure, compared to 47% of non-holders. Those who feel most secure are those who have life insurance through both work and individual coverage (78%).
“Life insurance is the foundation of any solid financial plan, and our results show it gives people a sense of security that many seek, especially after the past two years,” said Faisa Stafford, LUTCF, President. and CEO of Life Happens. . “The lasting impact of COVID remains front and center for many, with the pandemic leading nearly a third, or 31% of people, to say they are more likely to purchase life insurance in 2022.”
Gender gaps extend to life insurance coverage
The gap between life insurance needs – what people have versus what they say they need – is at an all-time high (18 points), more than double what it was 12 years ago . For the sixth consecutive year, the percentage of uninsured women has increased. Only 46% of women say they have life insurance, compared to 53% of men. However, a greater proportion of women than men agree that they need (or need more) coverage (44% vs. 38%).
Despite their recognized need, just over a third of uninsured women (36%) say they plan to purchase life insurance next year. Reasons given by women for not having coverage include:
- It’s too expensive — 39%
- I have other financial priorities right now — 37%
- I don’t know how much or what type to buy — 22%
“There are still over 100 million people in this country who do not have enough life insurance,” said David Levenson, president and CEO of LIMRA and LOMA. “And, while the growth of new policies reached its highest level last year since 1983, our industry can still do a lot to ensure that families are properly protected.”
In January 2022, LIMRA and Life Happens engaged an online panel to survey adult consumers who are financial decision makers in their household. The survey generated 8,517 responses. Results have been weighted to reflect the US adult population.