Americans without life insurance protection feel less prepared financially for the illness or demise of self or a loved one than people with life insurance, according to a new research report published by AIG.
Despite knowing the risk, they are not doing enough to prepare themselves to deal with the financial ramifications emerging from death, chronic illness or a retirement income shortfall.
The online study, in which more than 8,100 US consumers aged between 21 and 64 participated, found that people who don’t own life insurance feel 11 percentage points less prepared for death of self than those who have life insurance.
People without life insurance protection are 14 percentage points less likely to increase their rate of retirement savings in response to the risk of a market crash.
Additionally, they are twice as likely to take actions to reduce financial risk of illness of self compared to death.
AIG CEO of life insurance Rod Rishel said: “This research confirms that many people don’t feel fully prepared for the financial ramifications of death, chronic illness or a retirement income shortfall.
“Our Life Insurance business helps consumers mitigate financial risks by offering a wide range of innovative solutions designed to help individuals and their families when they need it most.
“We’ve also developed new resources to help financial professionals connect with and educate consumers about solutions designed to meet multiple needs.”
AIG said that the research was carried out in the third and fourth quarters of last year.