Young workers and women more likely to worry about life insurance, less likely to understand its financial benefits, according to Unum


CHATTANOOGA, Tennessee – (COMMERCIAL THREAD) – Benefits provider Unum (NYSE: UNM) finds that almost half (45%) of 25-34 year olds said they feel stressed or worried when thinking about life insurance, compared to only 29% of 35-49 year olds. Women were much more anxious about life insurance, with 37% saying they felt stressed or worried, compared to just 23% of men. These and other key findings were part of an online survey conducted by Unum in July of 1,226 working adults in the United States. This consumer snapshot coincides with Life Insurance Awareness Month, promoted annually by the non-profit organization Life Happens.

In the same study, respondents aged 25 to 34 consistently reported riskier financial planning decisions than workers aged 35 to 49:

  • Almost a fifth (19 percent) of young workers were unsure whether they had a life insurance policy, compared with just 2 percent of 35-49 year olds.

  • When asked how they would pay their bills if the main employee died, responses from young workers included credit cards (37%), loans from family or friends (13%), and bank loans. or on salary (10%). A third of young workers (33%) said they did not know how they would pay their bills. Respondents aged 35 to 49 said they would pay their bills with credit cards (21%), loans from family or friends (8%), and bank or payday loans (4%).

  • Forty percent of these 25-34 year olds didn’t have a life insurance policy because they thought they didn’t need it, that it was too expensive, or for other reasons. 34 percent of 35-49 year olds.

“It is concerning that such a large percentage of young people who tend to start their own families are leaving loved ones in a potentially risky financial situation,” said Laura Adams, personal finance expert. “For most people, their ability to earn a living wage is the biggest asset they have, and term life insurance is a relatively inexpensive way to protect that asset until retirement. or until their family financial obligations decrease.

The same study also highlighted some key gender differences on important issues regarding life insurance across all generations.

  • When asked who would assume their financial debt upon their death, 40 percent of men and 28 percent of women said their spouses. A greater percentage of women (16%) than men (8%) said their parents. More women (12%) than men (6%) said they were not sure.

  • A significantly higher number of women (29%) than men (20%) did not know how they would pay their bills if the main employee died.

  • More women (48 percent) than men (31 percent) thought they needed lower levels of life insurance ($ 100,000 to $ 250,000).

According to the life insurance industry group, LIMRA, nearly half of US households are underinsured, with an average coverage gap of $ 200,000. What’s more, the group says most households need around five years of income replacement from life insurance and / or savings.1.

The most important reason for having a life insurance policy is to financially protect loved ones. Whether they rely on the income of the main employee or on other financial resources, life insurance helps to ensure that they are covered in the event of that person’s death. It can also cover funeral expenses, pay off debt, pay property taxes, and things like a child’s education, student loans, or a mortgage.

1. LIMRA, “Focus on Life Insurance Ownership: Household Trends in the United States” (2016)

About Unum

Unum Group ( is a leading provider of financial protection services in the United States and the United Kingdom. Its main activities are Unum US, Colonial Life and Unum UK. Unum’s portfolio includes disability, life, accident and critical illness, dental and vision coverage, which help protect millions of workers and their families in the event of illness or injury. Unum also offers stop-loss coverage to help self-insured employers protect themselves against unforeseen medical expenses. The company reported revenues of $ 11.3 billion in 2017 and provided nearly $ 7 billion in profits.

For more information, connect with us on Facebook,
and LinkedIn.


Leave A Reply