Contrary to the widespread belief, major life events don’t lead to a life insurance purchase. In fact, six in 10 new parents and seven in 10 newly wed or divorced couples don’t shop or buy life insurance within two years, according to new LIMRA research.
As opposed to overall consumers, the research also finds newlyweds, new parents and divorcees report having more worries over finances, especially when it comes to money accumulation, protection needs, debt and bills. One-third of new parents and 45 percent of newlyweds and recently divorced consumers agree that they lack enough life insurance; however, about two-thirds of new parents, newlyweds and recent divorcees report that life insurance is not their top financial priority.
Among newlyweds, new parents and divorcees, they typically have many financial responsibilities that are stretched over limited funds, LIMRA finds. Still, without the protection of life insurance, a disability, death or sickness could put these families under major financial stress.
According to LIMRA, financial professionals should make an effort to connect with new parents and those with a new marital status, which can help them see their financial goals holistically. By having these conversations, consumers can better understand how life insurance can help them pay off debt, support their children’s education, and maintain retirement savings following a premature death.