Life Insurance Awareness Month is the perfect time for consumers to learn how life insurance can help support financial goals beyond death benefits
Consumers report that taking care of their families financially is a top priority, yet 68% are prioritizing other financial goals or investments ahead of life insurance, according to new research from Lincoln Financial Group1 (NYSE: LNC). During Life Insurance Awareness Month throughout September, Lincoln Financial is offering three actions consumers can take now to make life insurance a priority.
According to Lincoln’s 2023 Consumer Sentiment Tracker1, 80% of U.S. consumers surveyed say making sure their family is taken care of financially if they pass away is a financial priority, including 20% who say it is their number one financial priority. Yet, only 8% of respondents who don't currently own life insurance plan to purchase or enroll in it over the next five years.
“There are still misconceptions that the value of life insurance is only accessible once a death certificate is in-hand, but there are a variety of living benefits that life insurance can provide to help families secure their financial futures, including protection and accumulation potential,” said Matt Grove, executive vice president and president of Retail Solutions at Lincoln Financial.
In fact, despite the variety of living benefits life insurance provides, 53% of those surveyed believe it doesn’t become useful until after they die and less than half of consumers would expect to use life insurance for various financial goals, such as long-term care, education expenses, retirement, or growing wealth. 1
“We have an opportunity to help people learn what’s really available so they can make choices that are right for them and their families,” said John Kennedy, executive vice president, chief distribution and brand officer at Lincoln Financial. “Life Insurance Awareness Month can be the nudge consumers need to learn more about life insurance and its many forms of financial protection and wealth accumulation, so they can better understand its value and prioritize it in their financial planning.”
To recognize the 20th anniversary of Life Insurance Awareness Month, Lincoln Financial suggests taking the following actions as part of a financial plan for your future:
1. Determine what is most important to you and your family.
It’s important to know your financial goals before you begin identifying what tools can be used to help achieve them. For example, consumers surveyed identified minimizing future taxes (80%), saving for retirement outside of a workplace plan or IRA (76%) and saving for education expenses for children (48%) as current financial priorities, yet less than 46% are aware that each of these can be supported by life insurance. 1 Lincoln Financial encourages all consumers to identify their own financial priorities, both short- and long-term, as the first step in developing a financial plan.
2. Understand the range of options that may be available.
When deciding when and where to purchase life insurance, consumers should consider all of their options. Today’s life insurance market offers diverse solutions across various price points so consumers can tailor coverage to help meet their specific needs. Permanent life insurance offers the opportunity to accumulate cash value that can be withdrawn tax-free. Adding cash-value life insurance to a portfolio can help protect savings and provide tax-deferred growth opportunities, all while protecting a family’s financial future.2
One option for many consumers is to simply take advantage of their employer and workplace benefits programs.
“As workplace open enrollment season gets underway, now is the perfect time for consumers to understand the options offered through their employer and determine how life insurance fits into their holistic financial plan,” said Jimmy Reid, executive vice president, president of Workplace Solutions at Lincoln Financial.
3. Ask for help.
Financial planning is an essential part of reaching financial goals and talking with a financial professional can make a big difference. As consumers identify their financial goals and better understand how life insurance can support them, a financial professional can help build a comprehensive life insurance strategy, whether that’s through an individual policy, coverage provided by their employer or both. Lincoln Financial offers a convenient tool to help consumers find a financial professional to help them reach their goals.
For more information about life insurance, Lincoln Financial offers the following online resources:
About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help people take charge of their financial lives with confidence and optimism. As of December 31, 2022, approximately 16 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, and 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 $299.2 billion in end-of-period account balances, net of reinsurance as of June 30, 2023. Lincoln Financial Group is a committed corporate citizen included on major sustainability indices including the Dow Jones Sustainability Index North America and ranks among Newsweek’s Most Responsible Companies. Dedicated to diversity, equity and inclusion, we are included on transparency benchmarking tools such as the Corporate Equality Index, the Disability Equality Index and the Bloomberg Gender-Equality Index. Committed to providing our employees with flexible work arrangements, we were named to FlexJobs’ list of the Top 100 Companies to Watch for Remote Jobs in 2022. With a long and rich legacy of acting ethically, telling the truth and speaking up for what is right, Lincoln was recognized as one of Ethisphere’s 2023 World’s Most Ethical Companies®. We create opportunities for early career talent through our intern development program, which ranks among WayUp and Yello’s annual list of Top 100 Internship Programs. Learn more at: www.LincolnFinancial.com. Follow us on Facebook, Twitter, LinkedIn, and Instagram. Sign up for email alerts at http://newsroom.lfg.com.
1 Perspectives on Life Insurance, Lincoln Financial Group Research, 2023.
2 Distributions are taken through loans and withdrawals which reduce a policy’s cash surrender value and death benefit and may cause the policy to lapse. Loans are not considered income and are tax free. Withdrawals and surrenders are tax-free up to the cost basis, provided the policy is not a modified endowment contract (MEC). A MEC policy is one in which the life insurance limits exceed certain high levels of premium, or the cumulative premium payments exceed certain amounts specified under the Internal Revenue Code. For policies that are MECs, distributions during the life of the insured, including loans, are first treated as taxable to the extent of income in the contract, and an additional 10% federal income tax may apply for withdrawals made prior to age 59½.
Lincoln life insurance policies are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, and distributed by Lincoln Financial Distributors, Inc., a broker-dealer. The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates, including The Lincoln National Life Insurance Company, Fort Wayne, IN, and Lincoln Life & Annuity Company of New York, Syracuse, NY. Securities and investment advisory services offered through other affiliates. Affiliates are separately responsible for their own financial and contractual obligations.
Policies sold in New York are issued by Lincoln Life & Annuity Company of New York, Syracuse, NY, and distributed by Lincoln Financial Distributors, Inc., a broker-dealer.
All guarantees and benefits of the insurance policy are subject to the claims-paying ability of the issuing insurance company. They are not backed by the broker-dealer and/or insurance agency selling the policy, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer.
Products, riders and features are subject to state availability. Limitations and exclusions may apply. All contract provisions, including limitations and exclusions, should be carefully reviewed by the owner. For costs and complete coverage details, contact your agent or producer.
It is possible coverage will expire when either no premiums are paid following the initial premium, or subsequent premiums are insufficient to continue coverage.
Lincoln Financial Group® affiliates, their distributors, and their respective employees, representatives and/or insurance agents do not provide tax, accounting or legal advice. Please consult an independent financial professional as to any tax, accounting or legal statements made herein.
Note: Matt Grove, John Kennedy, and Jimmy Reid are spokespersons for Lincoln Financial. They hold leadership roles within Lincoln Financial Distribution, the wholesaling broker-dealer of Lincoln Financial Group. They are compensated by Lincoln and are shareholders of Lincoln National Corporation.
The purpose of this communication is the solicitation of insurance. A licensed insurance agent or the company may contact you.