8 uses for life insurance that most consumers are clueless about

By Warren S. Herscht

Life InsuranceWith Life Insurance Awareness Month now underway, advisors can look forward to an advertising and marketing blitz from the industry’s behemoths. The aim: to promote protection products to the nation’s uninformed, befuddled, uninsured and underinsured consumers.

The product manufacturers have their work cut out. According to a new survey, few Americans look to life insurance to fund living expenses beyond replacing income of a departed breadwinner or funding funeral expenses. And 43 percent believe the product to be too costly.

So reports Northwestern Mutual in its annual “2015 Planning & Progress study,” an online survey of 2,010 U.S. adults conducted in January. The research explores Americans’ attitudes and behaviors toward money, goal-setting and financial priorities.

The report shows that more than half of adults (51 percent) own life insurance. The other 49 percent of the adult population cite a host of reasons for not owning life insurance. Among them:

  • 43 percent say that life insurance is too expensive.
  • 31 percent say that coverage is a low priority compared to other expenses.
  • 14 percent say they never thought about life insurance and don’t know much about it.
  • 12 percent don’t know where to start.
  • 8 percent note they don’t have time to research/learn about/explore their options.
  • 6 percent say that life insurance is too complicated.
  • 5 percent say the product is too stressful.

Among respondents who say they don’t know much about life insurance or haven’t given the product a moment’s thought, millennials are most numerous at 28 percent. Smaller percentages of Gen Xers (16 percent), boomers (6 percent) and older seniors or “matures” (8 percent) also fall into this category.

Given the lack of knowledge about life insurance, it’s understandable that most respondents believe life insurance is used for paying funeral expenses (68 percent) and providing income for survivors (59 percent). But few cite the product’s other living benefits. Examples:

  1. Paying mortgages and debts (23 percent)
  2. Paying estate taxes (15 percent)
  3. Creating an estate (12 percent)
  4. Providing a cash flow in retirement (8 percent)
  5. Equalizing an inheritance (7 percent)
  6. Paying for college (5 percent)
  7. Taking out a loan/borrowing against (5 percent)
  8. Funding charitable contributions (4 percent)

“At a time when so many Americans are wrestling with how to achieve long-term financial security, people are overlooking one of the most critical tools to meet that goal,” says David Simbro, senior vice president of Life and Annuity Product, Northwestern Mutual. “Unfortunately, too many people lack a full understanding of all the ways permanent life insurance can be used to provide financial security. They see it as a single utility product, when it’s really more like a Swiss Army knife — it can be used for an amazingly diverse range of needs.”

Are you interested in learning more about how Life Insurance could be the perfect product for your portfolio to help you reach your goals?  If so, please consider attending one of our upcoming seminars!

Oct
18
Tue
2022
Retiring in Biden’s America October 18th – 11AM @ The Brownwood Hotel & Spa, The Mizell Room
Oct 18 @

AVOID LOSING UP TO 70% OF YOUR IRA TO TAXES

It is tough to imagine a retirement in which you don’t have to worry about the stock market, the evening news, global uncertainty and President Biden’s plans for our country. If you are like many Americans, you are very concerned about these critical issues and the impact they could potentially have on you and your retirement. Our fiduciaries’ qualifications include a Certified Estate Planner, a Published Author and have been Nationally Interviewed on CNBC’s Squawk on the Street, Yahoo! Finance, Kiplinger’s and Fox Business Daily News, and appeared on Fox 35 Money Watch over 30 times. Senior Financial has served their clientele here over 30 years. Our speakers will inform you about recent changes in Federal and State laws which allow the government to tax up to 70% of your IRAs.

This is a MUST seminar for Retirees who have previously planned to live on their investment income, annuities and IRAs. This is also a MUST if you are a Widow, Widower or Single Retiree. We specialize in Estate, Financial and Tax Planning for Singles, too!

  • Do you have an Airbag in your portfolio to protect against inflation, Trade Wars, Tariffs & Taxation?
  • Do you own an IRA and a Living Trust? IRS Publication 590 addresses the risks inherent with this flawed and over-used strategy. Our highly qualified and licensed team of fiduciaries will help you make sense of these complicated rules.
  • Trusts hit the HIGHEST tax bracket of 37% with just $13,450 in income upon your passing. Your children would have to earn $647,850 to be in the same bracket! If you didn’t know that, come find out why!
  • Have you been told bonds are “conservative”? Come see in person why owning bonds during the current economy may actually put your retirement savings in harm’s way.

This class is for retired folks or people nearing retirement. This is not your average, boring seminar. Come see and feel the difference from someone who truly wants to educate you. Nothing will be sold at this seminar.

Includes Meal & Bloody Mary Bar

LOCATION

BBB Accredited Business
National Ethics Bureau Approved
The Brownwood Hotel & Spa
The Mizell Room
3003 Brownwood Blvd.

The Villages, FL 32162
Seating is limited.
To make your reservations, call 352-307-8652 (24 Hours)
OUR WORKSHOP ALWAYS FILLS UP FAST, DON’T MISS IT!
 
DOORS CLOSE PROMPTLY 10 MINUTES PRIOR TO EVENT START TIME
PS: The last workshop was full. It could change your life!

(Note: Lawyers, Brokers, CPA’s or Advisors may NOT attend as space is needed for retirees.)

The presenter, speaker and sponsor of this information is a licensed, independent Insurance agent. The presenter, speaker and sponsor of this information (Invitation) as well as the information presented at the seminar is not related to, endorsed by, nor connected with and not approved by any Government agency or organization. Although the seminar is providing information of value for consumers, the seminar is a solicitation for Insurance products such as Medicare supplements, Long Term Care Insurance, Life Insurance, & Annuities.

Investment Advisory Services offered through Bucket List Wealth Management LLC, a Registered Investment Advisor.

Oct
19
Wed
2022
Retiring in Biden’s America October 19th – 11AM @ The Brownwood Hotel & Spa, The Mizell Room
Oct 19 @

AVOID LOSING UP TO 70% OF YOUR IRA TO TAXES

It is tough to imagine a retirement in which you don’t have to worry about the stock market, the evening news, global uncertainty and President Biden’s plans for our country. If you are like many Americans, you are very concerned about these critical issues and the impact they could potentially have on you and your retirement. Our fiduciaries’ qualifications include a Certified Estate Planner, a Published Author and have been Nationally Interviewed on CNBC’s Squawk on the Street, Yahoo! Finance, Kiplinger’s and Fox Business Daily News, and appeared on Fox 35 Money Watch over 30 times. Senior Financial has served their clientele here over 30 years. Our speakers will inform you about recent changes in Federal and State laws which allow the government to tax up to 70% of your IRAs.

This is a MUST seminar for Retirees who have previously planned to live on their investment income, annuities and IRAs. This is also a MUST if you are a Widow, Widower or Single Retiree. We specialize in Estate, Financial and Tax Planning for Singles, too!

  • Do you have an Airbag in your portfolio to protect against inflation, Trade Wars, Tariffs & Taxation?
  • Do you own an IRA and a Living Trust? IRS Publication 590 addresses the risks inherent with this flawed and over-used strategy. Our highly qualified and licensed team of fiduciaries will help you make sense of these complicated rules.
  • Trusts hit the HIGHEST tax bracket of 37% with just $13,450 in income upon your passing. Your children would have to earn $647,850 to be in the same bracket! If you didn’t know that, come find out why!
  • Have you been told bonds are “conservative”? Come see in person why owning bonds during the current economy may actually put your retirement savings in harm’s way.

This class is for retired folks or people nearing retirement. This is not your average, boring seminar. Come see and feel the difference from someone who truly wants to educate you. Nothing will be sold at this seminar.

Includes Meal & Bloody Mary Bar

LOCATION

BBB Accredited Business
National Ethics Bureau Approved
The Brownwood Hotel & Spa
The Mizell Room
3003 Brownwood Blvd.

The Villages, FL 32162
Seating is limited.
To make your reservations, call 352-307-8652 (24 Hours)
OUR WORKSHOP ALWAYS FILLS UP FAST, DON’T MISS IT!
 
DOORS CLOSE PROMPTLY 10 MINUTES PRIOR TO EVENT START TIME
PS: The last workshop was full. It could change your life!

(Note: Lawyers, Brokers, CPA’s or Advisors may NOT attend as space is needed for retirees.)

The presenter, speaker and sponsor of this information is a licensed, independent Insurance agent. The presenter, speaker and sponsor of this information (Invitation) as well as the information presented at the seminar is not related to, endorsed by, nor connected with and not approved by any Government agency or organization. Although the seminar is providing information of value for consumers, the seminar is a solicitation for Insurance products such as Medicare supplements, Long Term Care Insurance, Life Insurance, & Annuities.

Investment Advisory Services offered through Bucket List Wealth Management LLC, a Registered Investment Advisor.

This article originally appeared on LifeHealthPRO