Life Insurance for Middle-Income Families
Middle-income families in America say they recognize the importance of life insurance, yet many do not fully understand all the benefits it can provide.
According to the 2021 Insurance Barometer Study, conducted by LIMRA and Life Happens, 70% of middle-income families believe they need life insurance coverage and more than a third (34%) say they plan to purchase life insurance coverage. Research shows middle-income Americans are more likely to worry about burdening their loved ones with final expenses and leaving their dependents in a difficult financial situation should they die prematurely.
But perceived costs, financial priorities, and lack of knowledge continue to be obstacles to get middle-income consumers adequately insured. A third (33%) don’t think they would qualify for life insurance and three quarters overestimate the cost of life insurance. However, the reality is most middle-income consumers probably just don’t understand the basic concepts around life insurance. In fact, 7 in 10 middle-income Americans admit they are not knowledgeable about life insurance.
Which means many of your clients are probably unaware of the cash accumulation potential of life insurance. What I mean is life insurance can serve more than just income replacement, it can also provide supplemental retirement income.
Recent studies show that U.S. workers continue to be concerned about retirement. Maybe even more so now than ever. A recent survey conducted by the Insured Retirement Institute (IRI) found that U.S. workers ages 40 and older have insufficient retirement savings to cover their income needs, and they aren’t saving enough to catch up. Of those surveyed:
- About 25% had no retirement savings at all
- About 50% had less than $250,000 saved (with half of them having less than $50K saved)
- Only about 20% had more than $500,000 saved
Furthermore, in the same survey, of those between ages 67-73...
- 71% wished they would have saved sooner
- 77% wished they would have saved more
If you have clients who are in what we call the accumulation phase, now is a great time to bring up life insurance to them. If you need help putting together a strategy, Click Here to request a proposal and we can start putting together a case. Also, follow the link below to check out one of our popular strategies that is well-suited for Middle-Income Families
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