Affluent Clients Fret More And Do Less About Life Insurance, Hartford Finds
Although many affluent Americans feel less secure financially than they did last year, they are also less likely to have adequate life insurance protection, a new survey by Hartford Financial Services Group Inc. finds.
About 53% of respondents classified as “emerging affluent” (those with annual household incomes of $100,000 or more) said they are worried about their financial security. Yet the number of respondents saying their current life insurance was adequate slipped to 61%, from nearly 70% last year.
The survey results, based on an Internet poll of affluent Americans, suggest that many higher-income Americans do not carry adequate income protection for their families, says Michael Kalen, senior vice president and director of the Hartfords individual life division.
Hartford’s survey found 70% of respondents had less than $500,000 in life insurance coverage in 2004, up from 65% last year. Meanwhile, the number carrying less than $100,000 in coverage rose to 14%, from 11% last year.
Yet nearly 4 of 5 said income replacement was the main reason they carried life insurance in the first place.
Other financial security trends revealed by the survey:
? Fewer people were reviewing their life insurance needs as often as they thought they should about 64%, down from 68% last year.