Americans hold on to life insurance
Even when money's tight, new study shows

It’s not surprising that most Americans are looking for ways to cut back on expenses and shore up their savings. But that current cost-cutting mentality doesn’t extend to life insurance, according to a recent report called "The Value of Life Insurance in Tough Economic Times." Issued by Prudential Financial, the report was conducted online between June 24 and July 1, 2009.
"Even in these challenging times, life insurance remains a source of stability and peace of mind that can help alleviate major financial concerns both immediately and for the future," said Jim Avery, president of Prudential’s Individual Life Insurance business.

And the study’s findings bear that out:

• 94 percent of those surveyed have maintained or increased the amount of their life insurance over the last 18 months.
• At the same time, 90 percent acknowledged a loss of assets, and 55 percent indicated a traumatic financial event, such as loss of job, income, retirement contributions or health-care insurance over the past 18 months. 
• Despite the fact that 70 percent have cut back on routine expenditures, 84 percent indicated they view the cost of life insurance as relatively minimal when compared to other regularly budgeted items.

Prudential's study also revealed that for 93 percent of Americans, life insurance protection for their family is a "must." In addition, 95 percent recognize that their policies could be significantly more expensive to obtain at an older age, and 55 percent are concerned it could be harder to get coverage due to health conditions.

"Your health is your greatest wealth," Avery noted. "If you ask yourself, 'Is my health the same as it was 15, 10 or even five years ago?' the answer is very likely to be no, which underscores the reasons for purchasing life insurance earlier rather than later."

Prudential's "The Value of Life Insurance in Tough Economic Times" was released in conjunction with the company’s sponsorship of Life Insurance Awareness Month, an industrywide effort coordinated by the nonprofit Life and Health Insurance Foundation for Education every September.

Want to find out more results? Read "The Value of Life Insurance in Tough Economic Times." Want to talk with Jim Avery? Email Janet Gillespie. Want to learn more about the importance of the life insurance industry? Read "The Importance of Life Insurance" fact sheet or watch a video podcast featuring Mark Hug of Prudential Individual Life Insurance, and Andy Mako of Prudential Group Insurance hosted by A.M. Best.

The Prudential Insurance Company of America Newark, NJ.
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