Corebridge Financial published new research ahead of Life Insurance Awareness Month, highlighting important opportunities to enhance awareness and understanding around life insurance. Eric Tarnow, Head of Life Insurance at Corebridge, shares some key takeaways.
Q. What is the most important finding from the new Corebridge research on life insurance?
Our research reveals a lot about how Americans think about life insurance, but one of the most interesting takeaways is just how packed with emotion life insurance can be. We all hopefully have joyous plans for the future – children going to college, getting married, buying their first home – and life insurance is there to protect and enable those dreams. Our research found Americans with life insurance are dramatically more confident in the ability of their loved ones to financially manage without them (47% compared to 28%). And, with life insurance, even if tragedy were to strike, your loved ones may still be able to realize many of these aspirations.
Q. The Corebridge research finds 50% of Americans say they do not have life insurance and another 7% do not know whether they have a policy. How can we narrow this coverage gap?
Education and awareness are key to helping more Americans secure their financial futures with life insurance. There are often misperceptions that hold people back from taking action when it comes to life insurance.
For example, our research found 38% of Americans say cost is the top reason they have not bought life insurance with another 21% saying they have more important financial considerations. But when we asked about the cost of a standard term life insurance policy, 9 in 10 either dramatically overestimated or were unsure of the cost of coverage.
Another opportunity to help more people secure coverage comes from increasing awareness about the availability of streamlined processes – whether that’s online applications, accelerated underwriting or other technology advances. Our research found that 73% of individuals say they would be more likely to get life insurance if the purchase process included a 24-hour online approval process. The reality is that today it’s possible for life insurance policies to be delivered immediately, while some may be delivered in as little as 24 hours without the need for a medical exam.
Q. How should individuals think about life insurance as part of their overall financial plan?
Just as it’s important to understand how to build a budget, pay down debt and save for the future, it’s also important to include life insurance as a critical component of a comprehensive financial plan. Turning to a financial professional or an insurance agent is a great place to start. These professionals can help you assess your life insurance needs and think through how different types of life insurance can play different roles in a holistic financial plan, offering you confidence and readiness as you take action to prepare for the future.
Read the full Understanding Life Insurance Needs study on our Insights & Education page where numerous resources can be found to help plan a path toward financial security.
