Life insurance is one of the best financial protection and long-term savings tools available to families and businesses. By enhancing Americans’ economic security, life insurance products reduce the burdens on federal programs. Only life insurance products protect against an unexpected death or debilitating injury or illness and provide guaranteed income in retirement.
Businesses use life insurance to continue operating efficiently after the death of a key owner or employee, provide smooth ownership transitions, and recruit and retain key employees, and fund important health and retirement benefits.
Seventy-five million American families rely on life insurance for their retirement security. The life insurance industry is responsible for $20 trillion of financial protection in force and pays out $1.7 billion every day.
Unfortunately, too many Americans are underinsured. About 40% of American families do not have any life insurance coverage. While those families who do have coverage have less than they need. Most experts recommend coverage that is at least seven to ten times annual income.
Further, America faces a number of retirement challenges, and Americanfamilies worry about retirement savings. According to a 2017 Gallup Economy and Personal Finance poll, 54 percent of Americans are worried about not having enough money for retirement, and 40 percent are worried about not being able to maintain their standard of living. The fact that fewer workers have traditional pension plans to rely on for lifetime income, combined with the growing strain on government programs like Social Security and Medicaid, adds to Americans’ concerns.
Life insurance products are well-suited, and in some cases uniquely suited, to address America’s retirement challenges. In fact, $1 out of evert $6 of long-term savings is invested in life insurance and retirement annuities, the only financial products that ensure retirees cannot outlive their savings by guaranteeing a paycheck for life.
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