Consumer thoughts regarding life insurance during the covid-19 pandemic
Q1. What are the primary reasons you own life insurance?
0
%
Cover funeral related expenses
0
%
Cover lost income for my family if I die
0
%
Transfer wealth to my family or heirs
0
%
Protect wealth that I've accumulated
0
%
Generate savings to supplement my retirement plans
0
%
Cover taxes on current income/investments
0
%
Cover estate taxes
- The primary reasons why people own life insurance were to cover for funeral expenses and lost income
- The first three reasons indicate that people are most worried about what will happen after death
- The benefits of life insurance while you are still alive are not well known
- Many still do not realize how insurance can protect accumulated wealth and supplement retirement income
- The benefits of insurance for reducing future tax burdens is least known
Q2. Would you be more likely to purchase new/additional life insurance if …
| Yes | No | I Don't Know | |
|---|---|---|---|
| You could do so completely electronically | 29% | 46% | 26% |
| You could do so without having to complete lab tests as part of the underwriting practice | 35% | 44% | 22% |
| It provided more than just death benefit protection, and you could use it for future needs or emergencies while you're alive | 45% | 32% | 23% |
Q3. As a result of the COVID-19 pandemic, have you reviewed your life insurance coverage to ensure it's up to date and meeting your needs?
0
%
YES
0
%
NO
Q4. Has the COVID-19 pandemic changed your view on the importance of life insurance?
0
%
Yes, I now think life insurance is MORE IMPORTANT to own
0
%
Yes, I now think life insurance is LESS IMPORTANT to own
0
%
No, my view of life insurance importance has NOT CHANGED
Q5. What are the biggest obstacles to purchasing life insurance?
It's too expensive
37%
I don't want to have lab work done as part of the underwriting process
11%
The application process is too long and cumbersome
10%
The products are too complicated
11%
I don't know what type or how much to buy
16%
I have other competing financial priorities
22%
I don't know where to purchase life insurance
9%
Other
3%
There are no obstacles to purchasing life insurance
33%
Source: Lincoln Financial Group / Engine Insights, Life Insurance Awareness Month Survey, July 17-19, 2020
