Posts Tagged ‘Life insurance’

Americans Underutilizing Permanent Life Insurance

September 18th, 2014, No Comments, be the first ».

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 www.northwesternmutual.com.

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 www.lifehappens.org.

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By Ayo Mseka
Editor-In-Chief

 

 

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Only 46% of Middle-Market Consumers Own Individual Life Insurance

September 4th, 2014, Comments Off.

The need for the Life Insurance Awareness Month campaign currently under way is more important than ever—a recent LIMRA study reveals that only 46 percent of middle-market consumers own individual life insurance.

While 60 percent of Americans own group life insurance, the coverage often is less than individual policies and is only in place while the person is employed, according to LIMRA. One in four consumers in the study said they have no life insurance at all.

Middle-market consumers also said they were not financially prepared for the death of a family member, with the majority (51 percent) indicating they would need to make a drastic or significant financial change if that occurred.

“Life insurance is the one product that can help families keep a roof over their heads, provide for basic living expenses and allow time to recover and heal from the loss of a loved one,” says Robert Kerzner, president and CEO of LIMRA, LOMA and LL Global. “LIMRA’s research shows that people do not fully understand the risks they take by not having adequate life insurance coverage. ”

Advisors play an important role in helping Americans ensure they have the life insurance coverage they need to protect their families, LIMRA notes. Half of middle-market consumers said they prefer to buy life insurance face-to-face with a financial professional. LIMRA’s study revealed that consumers want an advisor who can educate, listen and develop trust. In addition, 6 in 10 consumers said it is very important that their advisor represent a respected brand.

Life Insurance Awareness Month is an educational initiative developed by the Life Happens organization to remind Americans of the importance of including life insurance in their financial plans.

“Our research revealed that half of middle market consumers are interested in learning how much life insurance coverage they need,” says Kerzner. “Efforts like Life Insurance Awareness Month can be a catalyst to start that important discussion.”

For this study, the middle market was defined as consumers ages 25-64 with annual household incomes of $35,000 to $99,999.

For more information about Life Insurance Awareness Month, visit Lifehappens.org.

 

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