Beginning March 29: To help insurance agents and financial advisors like you guide clients in making critical wealth, health and life decisions we will be moving our coverage from to

Our comprehensive coverage will help you expand your knowledge base and adapt a new client-centric approach that incorporates both insurance and investment solutions.

ThinkAdvisor’s new Life/Health channel is your roadmap to thriving in a disrupted environment.


Filed Under:Life Insurance, Sales Strategies

Chronic illness coverage most sought life benefit

More than one-third of respondents buy life insurance to replace income lost when an insured dies.
More than one-third of respondents buy life insurance to replace income lost when an insured dies.

More than one-third of Americans buy life insurance to replace lost income, the most widely cited reason for purchasing the product.

So reports Allianz Life in its “2013 Life Insurance Perspective Study,” which explores why Americans buy life insurance. Conducted by research firm Ipsos on behalf of Allianz Life, the survey questioned 2,034 individuals ages 25-75 with $75,000-plus in household income.

The survey indicates that 35 percent of respondents buy life insurance to replace income lost when an insured dies. (Among married couples, the proportion is 38 percent). This compares with smaller percentages of respondents who buy life insurance to pay for:

  • Funeral/probate expenses (28 percent);
  • Pay off mortgage debt (18 percent);
  • Leave an inheritance (11 percent);
  • Pay for expenses like college tuition, healthcare or emergencies (4 percent);
  • Secure an income or estate tax advantage (3 percent); and
  • Contribute to a charity/non-profit institution at death (1 percent).

When asked what they would be willing to give up for life insurance with living benefits, a plurality of those polled (36 percent) say they would not be willing to give up anything. Fewer respondents say they would be prepared to forgo:

  • Eating out (25 percent);
  • Driving a more expensive car (12 percent);
  • Their morning cup of coffee (12 percent);
  • Their next cell phone upgrade (8 percent);
  • Their next planned vacation (5 percent); and
  • Their annual bonus at work (2 percent).

When presented with examples of additional benefits available through some life insurance policies, “access to money if I become chronically ill” is the most popular option, with 62 percent of respondents noting it as the most valuable benefit. Half of all respondents say “access to available money to supplement retirement income” is most valuable, followed by those who choose “access to money to help fund college education” (22 percent) as their top selection.

Featured Video

Most Recent Videos

Behind the scenes with Vicki Gunvalson [VIDEO]


In this exclusive interview, Vicki Gunvalson shares how she built a $15 million a year annuity business by planning for...

Regulator: Market may need to reinvent LTCI


Cioppa says Maine's governor wants to spur the creation of better products.

Dementia: It's more than Alzheimer's


An association calls for policymakers to remember lesser-known neurodegenerative conditions.

Protesters Disrupt WellPoint Annual Meeting


Hecklers call for more disclosures of information about political contributions.

Related resources

More Resources


Power your business with up-to-the-minute insurance news, analysis, and best practices from LifeHealthPro Daily eNewsletter – FREE.

Power your business with LifeHealthPro Daily eNewsletter – FREE.

Enter a valid email address.
Nichole Morford

Nichole Morford
Managing Editor

Thank you for subscribing to LifeHealthPro Daily!

Check Out More eNewsletters Now! Close

Advertisement. Closing in 15 seconds.