Is life insurance becoming a hot financial planning tool? According to new research from Northwestern Mutual, that seems to be the case. Americans are obtaining life insurance to help secure their financial future and are incorporating into their financial plans.
Because of marriages, growing families and a looming retirement, the flexibility that life insurance products offer are attractive to those who are seeking to maintain a peace of mind no matter what life may throw at them.
According to the research:
- Twenty-three percent of Americans ages 18-34, are the most likely demographic to purchase life insurance because of a birth.
- Thirty-six percent of Americans age 55 or older and 39 percent of 45 to 54-year-olds were prompted to buy life insurance because of a marriage.
- Thirty-one percent of Americans age 55 and older bought it as part of their retirement plan, while 25 percent of 45 to 54-year-olds did the same.
- Twenty-five percent states home ownership among Americans 45 to 54-year-olds.
- Thirty-five 18 – 34-year-olds are significantly more likely than those ages 35-54 to have peace of mind as a result of knowing all their debts are paid.
- Both 35 – 44 (34 percent) year olds and 45 – 54 (36 percent) years olds derive the greatest peace of mind knowing that their family will be provided for in the event of their unexpected death, and those aged 18-34 (68 percent) and 45-54 (58 percent) who have life insurance were significantly more likely to have been motivated to purchase life insurance in order to provide for their loved ones.