NEW YORK--(EON: Enhanced Online News)--Today’s 20- and 30-somethings feel that life insurance is essential, just not necessarily for them, according to a survey undertaken by The Guardian Life Insurance Company of America (Guardian) and LearnVest.
“Our research with LearnVest shows that young adults are acutely aware of the serious financial obligations they face and feel strongly about not burdening their parents, spouses or business partners with debt should anything happen to them”
While 93% of the young adults surveyed for Life and Disability Insurance: What 20- and 30-Somethings Think acknowledge that life insurance is important, only 57% currently have some form of coverage and, of these, the majority (65%) obtained it through their employer’s group plan rather than purchased it on their own.
Even though the Guardian-LearnVest survey revealed that just 26% of respondents believe “Life insurance is only necessary for people with a family to support,” when it comes to their own situations, the research suggests that young adults still tend to rely on traditional triggers – marriage (40%) and dependents (44%) – before they will seek out coverage. Cost was cited by less than a third (31%) as a barrier.
In light of these findings, LearnVest has published an article, “5 Surprising Reasons You Might Want Life Insurance,” that describes other scenarios people in this age group might encounter in which having life insurance could have a critical impact – such as co-signing a student loan or starting a business.
Most young adults don’t view their parents as being financially dependent on them at this point in their lives. However, anyone who took out private student loans was required, in all likelihood, to have a parent or guardian co-sign on the loan. That person would be forced to repay the remaining debt if anything were to happen to the graduate – a financial burden he or she may not have the resources to assume without additional funds that a life insurance policy could provide.
Likewise, a young entrepreneur may be so focused on getting his or her business off the ground that the thought of it collapsing if something were to happen to the founder – or a partner, if there is one – probably isn’t top of mind. A life insurance policy can ensure that the business will have the funds to continue operating and providing jobs even without a key person in place.
“Our research with LearnVest shows that young adults are acutely aware of the serious financial obligations they face and feel strongly about not burdening their parents, spouses or business partners with debt should anything happen to them,” said Michael Ferik, Senior Vice President for Individual Life at Guardian. “Having adequate life insurance in place can make a difference in many situations beyond marriage or parenthood.”
The article coincides with Life Insurance Awareness Month, an annual educational initiative coordinated by the non-profit LIFE Foundation.
The survey sample consisted of 797 respondents 21-40 years of age with an annual household income of more than $30,000. Respondents were divided into four age groups, each of which represents 25% of the sample. Each age group was further weighted so the male/female balance was 50/50. Of the 797 respondents, 190 were current LearnVest subscribers who were recruited via e-mail from the company database. Responses were collected online via a 25-minute survey conducted between October 10 and October 21, 2012.
A mutual insurer founded in 1860, The Guardian Life Insurance Company of America and its subsidiaries are committed to protecting individuals, business owners and their employees with life, disability income and dental insurance products, and offer funding vehicles for 401(k) plans, annuities and other financial products. Guardian operates one of the largest dental networks in the United States, and protects more than six million employees and their families at 115,000 companies. The company has approximately 5,000 employees in the United States and a network of over 3,000 financial representatives in more than 80 agencies nationwide. For more information about Guardian, please visit www.GuardianLife.com.
LearnVest Planning is not affiliated with, owned or operated by The Guardian Life Insurance Company of America (“Guardian”) or Park Avenue Securities LLC (“PAS”).
About LearnVest, Inc.
LearnVest is an award-winning personal finance platform which, through its subsidiary LearnVest Planning, provides high-quality, fee-based financial advisory services. LearnVest Planning, a registered investment adviser, is redefining the traditional financial planning market with a dynamic, technology-enabled service—the Action Program. The 7-Step Action Program gives clients nationwide access to unbiased financial advice, straight from Certified Financial Planners™. These financial experts offer dedicated support and custom-tailored Challenges to help clients make real progress on their money. In addition, LearnVest Inc. offers a best-in-class Money Center app and accessible content.
Since launch, LearnVest Inc has raised over $40mm in venture-financing (led by Accel Partners) and been awarded numerous accolades, including one of Time’s "50 Best Websites of 2011" and back-to-back Best of Show awards at FinovateFall 2011 and 2012. LearnVest’s Board of Advisors includes: Lee Barba (Former CEO, Investools/thinkorswim), Theresia Gouw (Partner, Accel Partners), and Ann Kaplan (Former Partner, Goldman Sachs). Formal Advisors include Greg Waldorf (Former CEO, eHarmony), Greg Coleman (President, Criteo), and most recently, Susan Lyne (Vice Chairman, Gilt Groupe), Ed Mathias (Founding Member, The Carlyle Group), Todd Ruppert (Former CEO & President, T. Rowe Price) and Ann Sardini (Former CFO, Weight Watchers). For more information about LearnVest, please visit www.LearnVest.com.