Americans Underutilizing Permanent Life Insurance

September 18th, 2014, Comments Off.

As longevity and the cost of living continue to increase, Americans may be overlooking a key opportunity to strengthen their financial foundation. Despite the many advantages of permanent life insurance, only 22% of Americans currently own a permanent life insurance policy, a fraction of the 66% who have savings accounts, according to Northwestern Mutual’s 2014 Planning and Progress Study.

In contrast to savings and investing vehicles that focus on either asset accumulation or risk management, permanent life insurance is a multi-faceted financial solution that augments a death benefit with a number of important living benefits.

“Permanent life insurance is the proverbial Swiss army knife of financial solutions because it can be used to tackle any financial challenge from leaving a legacy to dealing with a medical emergency,” said David Simbro, senior vice president, Northwestern Mutual. “Flexibility, combined with the fact that permanent life insurance is virtually recession-proof, means invaluable peace of mind in today’s complicated and unpredictable economic environment.”

According to Simbro, the advantages of permanent life insurance include:

  • Guaranteed growth in value over time: The cash value of a permanent life insurance policy never declines and is guaranteed to continue increasing over time, tax-deferred.
  • Flexibility: Policy owners can leverage the value to pay for college, fund a business, or address any number of planned or unexpected financial needs. Because of its assignability, the policy can also serve as collateral.
  • Retirement: Policy cash value can be leveraged to supplement retirement income.

Participating in LIAM
As the company that is committed to helping Americans achieve financial security, Northwestern Mutual is leveraging this month’s Life Insurance Awareness Month (LIAM) campaign to deepen awareness of permanent life insurance and how it can serve as the cornerstone of a sound financial strategy.

Simbro is encouraging consumers to meet with a financial advisor to explore the role permanent life insurance can play in their overall planning strategy. And Northwestern Mutual’s Online Learning Center features a wide range of resources and tools for individuals interested in learning more about the many attributes of permanent life insurance. For more information, visit

LIAM is a public-relations campaign coordinated each September by the Life Happens organization to increase Americans’ awareness of insurance and the critical role it can play in their lives. To learn more about LIAM and the tools provided by Life Happens, visit


By Ayo Mseka



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Women More Concerned about Money in Retirement Than Men

September 16th, 2014, Comments Off.

A LIMRA Secure Retirement Institute survey reveals that among consumers aged 50 -75 with $100,000 or more in household income, women are more likely than men to be concerned about running out of money in retirement (46 percent vs. 35 percent).

As more workers are expected to fund their own retirement, women may be expressing concern for several valid reasons. The latest Bureau of Labor Statistics numbers show that as of the first quarter, 2014, the median wage for women is 83 percent that of men. Over a career, a lower salary, combined with breaks in employment to care for children and other family members, often leads to less retirement savings as well as lower Social Security income. These issues, as well as the fact that women usually live longer in retirement than men, compounds the challenges women face as they plan for retirement.

The good news, according to the LIMRA Secure Retirement Institute, is that women see value in getting professional advice, which could help them with investment and savings strategies to maximize their retirement assets.

Nearly 7 in 10 women believe financial advisors provide value beyond what they could achieve on their own, while only half of the men surveyed agreed with that statement. More women than men also said they trust advice from a financial professional and a majority of the women said that financial advice is worth the money. (See Graphic)

Saving for retirement is a challenge for both women and men but women often face greater obstacles throughout their working years, when professional advice can be invaluable. Working with a financial advisor can give women the strategies they need to ensure they have the financial wherewithal to achieve a secure retirement.


By Ayo Mseka


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