RADNOR, Pa.--(BUSINESS WIRE)--Lincoln Financial Group (NYSE: LNC) today announced findings from its American Consumer Study, which showed a disconnect between consumers’ views of life insurance and product ownership. The majority of respondents (74 percent) say it is important to have life insurance, but only 57 percent actually own it. Additionally, over half of the respondents feel that paying off short-term debt (like credit cards) quickly is a higher priority than putting money into life insurance. For that reason, the company is sharing four tips to help make life insurance a priority as part of a larger financial plan.
“Life insurance needs to be a core component of any financial plan, as opposed to being viewed just as a product that provides financial security down the road,” said Daniel L. Whittenburg, MBA, CFP®, AIF®, a partner at Whittenburg Wealth Management and a registered representative with Lincoln Financial Advisors. “When viewed that way, people can easily become more focused on living in the moment, thinking there will always be a better time to buy life insurance later. These benefits are a vital part of a long-term financial strategy, so we want to help ensure families make that connection in order to take appropriate steps and protect their future.”
To help consumers, Lincoln Financial recommends they consider these four tips to help prioritize life insurance as part of a larger financial plan:
- Start the Conversation. Setting aside time to sit down with one’s spouse or significant other to discuss their financial future and how life insurance plays a role is not only a great starting point, but it is also a conversation to revisit periodically. Life’s milestones like getting married, having a baby and buying a house are examples of good times to do so. Have an open dialogue around financial security and, in the event of a death, how the family will be able to fund things like college tuition, mortgage/rent, funeral expenses and retirement.
- Create a Budget. Paying down credit cards may seem like a more important short-term obligation—until a loved one suddenly passes away and financial burdens begin to mount. Consumers who have not already done so should create a budget to balance priorities. Small changes can add up to big savings to put towards life insurance and other retirement solutions.
- Understand the Options. Instead of feeling overwhelmed, become empowered. Consumers can take charge of their financial futures by educating themselves on the various types of life insurance products and solutions that can help achieve their short and long-term financial goals. Understanding what option is right for them and their loved ones is the key to taking action, whether it is purchasing a term, universal or variable universal life policy.
- Consult a Financial Advisor. A financial professional can help develop a holistic financial plan tailored to an individual’s specific needs, as well as provide education about various insurance and retirement solutions.
“Lincoln’s research also found that the majority of respondents across all generations said that spending time with family makes them happiest in life—more than a fulfilling career, pursuing hobbies or maintaining friendships,” said Whittenburg. “Loved ones mean everything to us, which is why charting a clear financial path for their future is among the greatest gifts we can give them.”
For an infographic that references the research in this study, please click here.
About the 2016 American Consumer Study
The 2016 Lincoln Financial Group American Consumer Study is a survey of 2,550 American Consumers, 18 years of age or older across the United States. The survey was conducted in Q4 2016 by Lincoln Financial Group, in partnership with Penn Shoen Berland. The margin of error with the total sample is +/- 2% with a confidence interval of 95%.
About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help empower people to take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, as well as to guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $241 billion in assets under management as of June 30, 2017. Learn more at: www.LincolnFinancial.com. Find us on Facebook, Twitter, LinkedIn, and Instagram. To sign up for email alerts, please visit our Newsroom at http://newsroom.lfg.com.
About Lincoln Financial Network
Lincoln Financial Network is the marketing name for the retail sales and financial planning affiliates of Lincoln Financial Group and includes Lincoln Financial Advisors Corp. and Lincoln Financial Securities Corp., both members of FINRA and SIPC. Consisting of approximately 8,900 representatives, agents, and full-service financial planners throughout the United States, Lincoln Financial Network professionals can offer financial planning and advisory services, retirement services, life products, annuities, investments, and trust services to affluent individuals, business owners, and families. Lincoln Financial Group is the marketing name for Lincoln National Corporation (LNC) and its affiliates. Find us on LinkedIn, Facebook, Twitter, and YouTube.