Americans who are between 18 and 34 years old who have some degree of life insurance protection are most likely to have been prompted to purchase it because of the birth of a child as opposed to Americans age 55 and up.
The finding comes as a result of a recent poll by Northwestern Mutual, Milwaukee WI. The poll sought to quantify the different motivations behind purchasing life insurance across varying ages and lifestyles.
The poll found that 36 percent of Americans over 55 who own life insurance bought it as a direct result of getting married while 31 percent bought it to utilize as part of a retirement plan.
Forty-five to 54 year olds who own life insurance were spurred to do so because of marriage (39 percent) followed by retirement planning (25 percent) and home ownership (25 percent). This age group felt most comfortable due to their purchase of life insurance with 69 percent of them saying that they feel secure as a result of owning life insurance.
The poll also asked Americans what gave them the greatest peace of mind and the generations differed in their opinions significantly. Thirty-five percent of 18 to 34 year olds felt the most peace of mind knowing that their debts were paid off.
Thirty-four percent of those between 35 and 44 and 36 percent of those between 45 and 54 derive the most peace of mind knowing that their family will be provided for in case of an unexpected death while 68 percent of those between 18 and 34 and 58 percent of those between 45 and 54 who have insurance were likely to have purchased it to provide for their loved ones.
Those 55 and up derive the most peace of mind knowing that they will have enough money to live in retirement.
“It is important to have a financial plan that can both support you and evolve across the span of your lifetime as your financial situation changes. Life insurance can be a stable and yet flexible cornerstone of a financial plan—protection if you need it while also helping you to meet financial goals at various life stages,” said David Simbro, senior vice president at Northwestern Mutual.