Life Insurance Proving More Important than Just 2 Years Ago

With the economy still struggling along, a new State Farm Life Insurance Company survey notes that since the economic downturn two years ago and the uncertainty it has led to for people’s finances, many individuals say life insurance is more important than it was two years ago.

However, 74 percent of couples note they rarely or never talk about the topic.

The survey discovered that discussing life insurance is particularly hard for men and women who are primary earners for the family. These respondents indicate key reasons for avoiding the topic include stress regarding daily economic pressures and concern that a partner might react negatively – especially when there is a job loss.

The survey, conducted by KRC Research, points out that among couples who are unlikely to talk over life insurance, the topic is especially concerning for women when faced with the prospect of becoming the primary earner for the family.

When questioned why they would not initiate a conversation regarding life insurance, respondents reported financial stress as very or somewhat important. Women were significantly more apt to remain silent with 64 percent indicating they would be too stressed to initiate a conversation with their significant. This compares with 47 percent of men faced with the prospect of being the sole breadwinner.

In the survey, 62 percent of men and women noted that given the economic downturn and the uncertainty it has led to for finances, having life insurance is much or somewhat more important than it was two years ago. At the same time, the report notes that these economic pressures along with concerns regarding a partner's reaction are important reasons why many couples stay away from the topic altogether.

This is especially true for men and women faced with the prospect of becoming primary income earners for the family. When asked the reason why they would not initiate a conversation about life insurance, they noted the following factors as very or somewhat important:

1. Seventy-four percent said that avoiding the talk comes from the pressure of meeting immediate household financial needs as the sole income earner.
2. Fifty-one percent answered that should a partner lose a job, that time would not be the best to bring up a subject that might make them feel even worse.

Despite economic pressures, many people in the survey still noted that having insurance coverage for someone at home caring for children is just as important as someone earning an income.

According to the survey, 85 percent of respondents strongly or somewhat agreed that life insurance is just as critical for a spouse or partner who stays at home and cares for children as it is for the spouse or partner who is the main income earner.

Earlier in 2010, a study by the research firm, LIMRA, discovered that close to one third of U.S. households currently has no life insurance, the highest level in more than 40 years.

The survey also discovered that due to the challenging economy, more than half of Americans are now focused solely on protecting what they have as opposed to working to achieve their financial dreams.

When asked to choose what best described their present financial situation, just 39 percent said they were working to grow what they have to achieve their financial dreams. However, the majority (52 percent) indicated they were working to protect what they have to break even.