New research from the Washington D.C.-based American Council of Life Insurers (ACLI) finds that nearly two-thirds of U.S. households are on the right track to financial security.
The ACLI study, released Sept. 8, analyzes data from 4,500 U.S. households to provide a comprehensive picture of Americans' current state of financial and retirement security. It finds that 65% of U.S. households are on track or nearly on track to be financially secure. Among households considered to be the most financially secure, 25% earn $50,000 or less. Among households that need significant financial improvement, 25% earn $72,000 or more.
"The study dispels the myth that income levels alone guarantee financial security," said ACLI President and CEO Dirk Kempthorne. "Financial and retirement security can be within everyone's reach so long as they have access to, and use, the right tools."
The ACLI research looks at characteristics and common practices that contribute to a household's financial security. It finds that most financially secure households:
• Have a financial plan
• Accumulate savings
• Maintain an emergency fund
• Manage debt
• Secure financial protection through life insurance, disability income insurance, long-term care insurance and annuities.
"The research shows a path that all Americans, regardless of income, can take to build financial and retirement security," Kempthorne said.
"Financial and retirement security also means protecting what you have built from life's uncertainties. That is what life insurers do every day for 75 million American families. Whether it is protecting families' financial futures following the death of a wage earner, protecting hard-earned savings from being depleted due to a disability or the high cost of long-term care, or protecting against the risks of outliving retirement savings, life insurers offer solutions that form the cornerstone of financial security.
"We chose to release this study during Life Insurance Awareness Month to educate Americans on the steps they can take to improve their financial and retirement security and the key role life insurance products play in those plans. In fact, 80% of financially secure households own life insurance."
Visit www.acli.com throughout the month of September to learn how annuities and life, disability income and long-term care insurance can help Americans secure their financial futures. And see the infographic below for more facts about the industry.
LIMRA offers facts and figures to help support LIAM efforts
As we are now right in the middle of Life Insurance Awareness Month (LIAM), LIMRA has rounded up some compelling facts to help prompt your clients and prospects to review their life insurance coverage and hopefully take steps to get the coverage they need to protect their families.
In LIMRA’s most recent U.S. life insurance ownership study, we found there are 51 million Americanswho believe they need more life insurance. Yet, just a quarter will shop for life insurance over the next 12 months, and even fewer will actually buy the coverage they need.
Only 1 in 5 households with children under 18 are uninsured — 3.7 million fewer households, compared with 2010 results (the last time LIMRA conducted the study).
Among these households:
• 4 in 10 say they would immediately have financial trouble if a primary wage earner died today.
• Another 3 in 10 would have trouble keeping up with basic living expenses after several months.
In support of LIAM 2017, LIMRA has gathered facts, charts, and other resources in one place to help producers share facts related to this important campaign. To view these resources, please visit LIMRA’s LIAM 2017 landing page.
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