As Americans better understand the benefits of life insurance, the more they’re willing to pay for it according to a recent Allianz Life study. Only 4% of Americans ranked access to money for healthcare, emergencies, college funding and retirement as top reasons to buy life insurance. But when asked more specifically about the benefits, 64% said they would sacrifice to have a life insurance policy to have these benefits.
More than 80% said the traditional death benefit is the primary reason why they would buy life insurance. Replacing lost income when policyholder dies, paying for funeral expenses and paying off mortgage and other debt are the most important reasons why respondents would own life insurance. When presented with other benefits, 62% of respondents said “access to money if I became chronically ill” as most important.
Allianz Life Vice President of Advanced Markets Deb Repya said the study shows Americans appreciate the benefits of life insurance policy in the event of a death, but there needs to be a better understanding about the variety of life insurance policies that exist today and the additional benefits they can provide.
The study also showed a lack of understanding when a life insurance policy kicks in. Most people believe that the average age of when widowhood begins is 72 years-old for men and 70 for women. But in reality, the actual age of widowhood for both men and women begins at 59 years-old according to the U.S. Census Bureau.
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