who needs insurance preparation for the generations
TRANSCRIPT
P r e p a r a t i o n f o r t h e G e n e r a t i o n s
WHO NEEDS INSURANCE?
Here are some facts by generation that insurance company sales reps, agents and producers can share with customers when reviewing their Disability,
Critical Illness and Life insurance coverages.
Caution! A life-changing event may be up ahead.
EXPECT THE UNEXPECTED
EXPECT THE UNEXPECTED
A 35-year-old blue collar worker has a 34% chance of having a 90-day disability. And, if that disability stretches beyond 90 days, the average length of disability would be just under six years.
The likelihood of a disabling injury or illness is probably greater than many people think.
Source: Gen Re [Calculations based upon the 2012 Individual Disability Experience Committee (IDEC) tables; figures are for Class 4–Blue Collar, Heavy Manual Duties]
DisabilityInsurance
EXPECT THE UNEXPECTED
Source: National Cancer Institute, Surveillance, Epidemiology and End Results (SEER) Program, 2014
Males have a 1-in-2 chance, and females have a 1-in-3 chance, of developing a malignant cancer.
The chances of having a chronic condition may be surprising. Critical IllnessInsurance
EXPECT THE UNEXPECTED
Source: Centers for Disease Control and Prevention, National Vital Statistics System, Deaths: Final Data for 2011, released June 2014
Across these two generations, over 30,000 deaths were attributed to unintentional injuries in 2011.
The leading cause of death for Gen Xers and Millennials is unintentional injury.
Life Insurance
BE PREPAREDWithout insurance, a catastrophic life event would leave most people financially unprepared.
BE PREPARED
Source: Experian, Fourth Annual State of Credit, 2013
Gen Xers and Baby Boomers carry the most credit card debt on average—over $5,000.
Millennials
Gen Xers
Baby Boomers
GreatestGeneration $3,044
$5,347
$5,343
$2,682
BE PREPARED
Overall, 26% have no emergency savings (across all generations).
Source: Bankrate.com, Financial Security Index Survey, 2014 (Does not total 100% due to “don’t know/refused” responses)
No Emergency Savings
Less Than 3 Months'Living Expenses
3–5 Months'Expenses
Enough to Cover 6 or MoreMonths' Expenses
26%
24%
17%
23%
BE PREPARED
64% of Social Security Disability beneficiaries received a monthly benefit amount of under $1,250 (in 2013).
If they’re disabled,
the average monthly Social Security family benefit for a widowed parent and two children (in 2013) was only $2,604.
If they die,
*Family consists of 1.9 wage earners and 1.6 children under age 18 Sources: Social Security Administration, Annual Statistical Supplement, 2014, Preliminary data. U.S. Department of Labor, Bureau of Labor Statistics, 2014
Gen Xers and Baby Boomers can’t solely depend on Social Security if they become disabled or die.
The average American family* spent $5,635 per month (in 2012) for food, housing, apparel, transportation, entertainment, insurance and other expenses.
Meanwhile…
BE PREPARED
$570,744
$780,996
Millennials
Gen XersGap $448,996
Gap $370,744
$260,000
$200,000
Coverage Needed
Coverage Needed
Adult Millennials1
1981–1999
Younger Gen Xers1973–1980
Older Gen Xers1965–1972
Younger Boomers1957–1964
Older Boomers1949–1956
Gen Xers have the largest coverage gap at $448,996 in life insurance still needed to cover self-reported needs, followed by Millennials at $370,744.
34% of adult Millennials do not own any life insurance.
Many—especially Gen Xers and Millennials—do not own or have enough life insurance.
Source: New York Life, Life Insurance Gap Survey, Press Release, September 2013
1Only Millennials who were born between 1981-1988 were surveyed Source: LIMRA, U.S. Consumers Today, The Generations, 2014
Median Amount of Life Insurance Coverage in Place
27%
24%
23%
27%
34%
Note: The defined age range of generations varies by source.
© 2015 General Re Corporation. This presentation is based on Gen Re’s understanding of a number of external sources. It is intended to provide background information for our clients and professional staff. It is time sensitive and may need to be revised and updated periodically.
Heidi Alpren
+1 207 347 4624
Phone
/in/heidialpren
AVP, Market Research Analyst