Employee
benefits provider Unum finds that 38% of U.S. adults rate
their ability to manage finances as average, poor, or very poor. An additional
40% of respondents say they don’t have or don’t know if they have a life
insurance policy to financially protect their loved ones.
These
findings and more are part of an online poll of 1,000 U.S. adults conducted by
Unum in August. These consumer insights coincide with Life Insurance Awareness
Month, promoted annually by the nonprofit organization, Life Happens.
This
press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190903005062/en/
The
same study highlighted additional financial exposure and anxiety, including:
·
35% say thinking about what would happen to their family should
they die unexpectedly was a top cause of anxiety; only going to the dentist
(40%) rated higher.
·
If the family’s primary wage-earner were to die unexpectedly,
32% of those in their prime working years (25-64) would feel the financial
impact within a month.
·
34% think they need just one or two times their annual salary in
life insurance to financially protect their family.
According
to life insurance industry group, LIMRA, nearly half of U.S. households are
underinsured, with an average coverage gap of $200,000. Additionally, the group
recommends an individual have seven to 10 times their salary in life insurance1.
“While
it’s not surprising that so many adults aren’t confident in their financial
planning abilities, it’s concerning that such a large percentage are leaving
their families financially unprotected,” said personal finance expert, Laura Adams. “For most people, their ability
to earn an income throughout their life is the biggest asset they have, and
term life insurance is a relatively inexpensive way to protect that asset until
they retire, or their family financial obligations decrease.”
Of
survey respondents working full-time, 46% purchase life insurance through their
employer, most often during an open enrollment period in the fall. However,
according to a separate survey by Unum of 1,512 working adults also conducted
in August, 50% spend 30 minutes or less reviewing all their benefit options prior
to enrolling.
The
most important reason for having a life insurance policy is to financially
protect loved ones. If they count on the primary wage-earner’s income or other
financial resources, life insurance helps assure they’re covered if that individual
passes away. It can also cover funeral expenses, pay off debt, pay estate taxes
and for things like a child’s education, student loans, or a home mortgage.
In
2018, Unum’s group life insurance plans paid $1.1 billion in claims to more
than 24,000 families. Visit Unum’s life insurance page for more information.
1.
LIMRA, “What Do Employees Know About Life Insurance?” (2018).
About
Unum
Unum Group provides a broad portfolio of
financial protection benefits and services through the workplace, and is the
leading provider of disability income protection worldwide. Through its Unum
US, Unum UK, Unum Poland, and Colonial Life businesses, the company provides
disability, life, accident, critical illness, dental and vision benefits that
protect millions of working people and their families. Unum also provides leave
and absence management services that streamline the leave experience for
employers and employees, and stop-loss coverage to help self-insured employers
protect against medical costs. Unum reported revenues of $11.6 billion in 2018
and paid $7.2 billion in benefits.
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