New research announced by American International Group, Inc. on July 17 reveals that consumers who do not have life insurance feel less prepared financially for the illness or death of self or a loved one than people with life insurance; yet, they are not more likely to act to reduce risk.
AIG also found that having insufficient retirement funds was among consumers’ most explored – researched, discussed or thought-about – risks.
“This research confirms that many people don’t feel fully prepared for the financial ramifications of death, chronic illness or a retirement income shortfall,” said Rod Rishel, Chief Executive Officer, Life Insurance, AIG. “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.”
The research – conducted online with more than 8,100 U.S. consumers ages 21-64 – 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.
- Are 14 percentage points less likely than life insurance owners to increase their rate of retirement savings in response to the risk of a market crash.
- Are twice as likely to take actions to reduce financial risk of illness of self than of death.
The solutions available through AIG’s Life Insurance business include products for consumers who may need increased supplemental income in retirement, as well as life insurance policies with integrated or available living benefit riders for chronic illness.
AIG also offers resources including Generation Station, an online tool to help financial professionals quickly pinpoint appropriate life insurance offerings based on a client’s age, sex, and a few other attributes. The tool, along with generational outreach tips, is at www.aig.com/GenerationMatters.
Additionally, AIG has launched new online centers at www.aig.com/IUL and www.aig.com/QoLIUL to share comprehensive information about index universal life (IUL) insurance products. IUL solutions are designed to offer life insurance protection, opportunities for cash accumulation, income in retirement, and a measure of protection against market downturns.
The AIG research was conducted online in the third and fourth quarters of 2017. Additional data and insights from the research will be released in coming months. For more information on AIG, visit www.aig.com.