Life Insurance Is Very Important to Beneficiaries, Yet Less Than Half of Consumers Are Confident They Have Enough Coverage, New NAIC Survey Shows
More than half of consumers surveyed say that if they died within the next 10 years, their beneficiaries would need their life insurance payout to cover living expenses, according to a new survey from the National Association of Insurance Commissioners (NAIC). Yet, despite its importance, only 46 percent are ‘extremely’ or ‘quite a bit’ confident that their policies are enough to meet their beneficiaries’ needs.
Overall, 65 percent of survey respondents report that they have life insurance today that they’ve purchased on their own, obtained through a job, or both. According to the survey, more younger consumers are purchasing policies. A total of 59 percent of consumers ages 18-29 report that they have life insurance policies and nearly one-quarter say they’ve obtained policies within the last year.
Beneficiaries Are Better Prepared
Policyholders are taking important steps in working with their beneficiaries. An overwhelming 89 percent of those surveyed say their beneficiaries are aware of policies in place and more than three quarters know where the policies are located.
When it comes to reviewing policies with beneficiaries, policyholders are on different timetables. A total of 36 percent of respondents have reviewed policies with their beneficiaries in the last year, 33 percent reviewed a year ago, and 31 percent more than a year ago.
About the Survey
This survey was conducted online within the United States using SurveyMonkey from Aug. 18 to 19 among 1,294 U.S. adults ages 18 and older. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact lgroshong@naic.org.
About the National Association of Insurance Commissioners
As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally.