Americans Attracted to Additional Benefits of Life Insurance If Asked More
Directly, Allianz Life Study Finds
Study Uncovered Opportunity to Educate about Additional Benefits
MINNEAPOLIS -- October 29, 2013
When given a list of reasons to buy life insurance, only 4% of respondents to
a recent survey from Allianz Life Insurance Company of North America (Allianz
Life) ranked “access to money for expenses like supplementing college funding,
healthcare, emergencies, or supplemental retirement income” as a top reason.
However, if asked more directly about these additional benefits, 64% of them
indicated they would make a sacrifice to have a life insurance policy with
such benefits. The results indicate more education or better explanation of
these benefits would enhance Americans’ interest in life insurance.
The Allianz Life 2013 Life Insurance Perspectives Study* evaluated why
Americans buy life insurance. When asked to rank the most important reasons
for owning life insurance, more than 80% of respondents recognize the
traditional death benefit as the primary purpose for purchasing. The majority
of respondents selected either “replace lost income when insured dies” (35%),
“pay for final funeral/probate expenses” (28%) or “pay off mortgage/debt”
(18%) – as their top selection.
However, when asked specific questions about additional benefits, many
Americans said they would want life insurance with those benefits. More than
six in 10 (64%) respondents indicated they would make a sacrifice to have a
life insurance policy with additional benefits (described as access to
available money to help fund college education, supplement retirement income
or assist if they became chronically ill). A quarter of respondents said they
would “eat out less often,” followed by those who said they would give up
“driving a more expensive car” (12%), “my morning cup of coffee” (12%), “my
next cell phone upgrade” (8%) and “my next planned vacation” (5%).
“People still appreciate the ability for life insurance to assist with an
unexpected death, but this study shows clearly that more education is
necessary about the value and availability of additional benefits within some
life insurance policies,” said Allianz Life Vice President of Advanced Markets
Deb Repya. “Several options are available today beyond traditional term and
permanent policies, so it’s important that the industry continues to spread
the word about the versatility of modern life insurance.”
When presented with examples of additional benefits available through some
life insurance policies, “access to money if I become chronically ill” was the
most popular option with 62% of respondents noting it as the most valuable
benefit. Half of all respondents said “access to available money to supplement
retirement income” was most valuable, followed by those who chose “access to
money to help fund college education” (22%) as their top selection.
The survey also uncovered a gap between when people think they may need to
utilize life insurance benefits, such as income replacement, and reality as
reported by the U.S. Census Bureau. When asked what they believe is the
average age of widowhood for both men and women in the United States, the
median response was 72 years old for men and 70 for women. Both answers are a
full 10 years later than the actual age of widowhood for both sexes, estimated
to be age 59.4 (U.S. Census Bureau, May 2011).
About Allianz Life
Allianz Life Insurance Company of North America, one of FORTUNE’s 100 Best
Companies to Work For in 2013, has been keeping its promises since 1896.
Today, it carries on that tradition, helping Americans achieve their
retirement income and protection goals with a variety of annuities and life
insurance products. As a leading provider of fixed index annuities, Allianz
Life is part of Allianz SE, a global leader in the financial services industry
with 142,000 employees worldwide. More than 78 million private and corporate
customers rely on Allianz knowledge, global reach, and capital strength to
help them make the most of financial opportunities.
*The Allianz Life 2013 Life Insurance Perspective Study was conducted by Ipsos
via their online iSay/Partner Vendor Sample from Sept. 6-18, 2013 with 2,034
panel respondents age 25-75 with $75,000+ in household income, and was
commissioned by Allianz Life Insurance Company of North America.
Allianz Life Insurance Company of North America
Sara Thurin Rollin, 763-765-6703
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