The motivations underpinning the purchase of life insurance and planning future financial security vary significantly by age and lifestyle, new research reveals.
Northwestern Mutual Life Insurance Co., Milwaukee arrives at this conclusion in the final of a three-part survey offering insights into financial planning across generations.
The poll found that young Americans between ages 18 and 34 who have life insurance are more likely to have purchased life insurance due to the birth of a child than those age 55-plus (28% versus 16%, respectively)
More than one-third (36%) of Americans over age 55 who have life insurance were prompted to buy life insurance as a result of marriage and 31% were prompted as part of a retirement plan, the report reveals.
Individuals between ages 45 and 54 who have life insurance were prompted by marriage (39%), followed by retirement planning (25%) and homeownership (25%). This group had the highest percentage than any other age group when asked how secure they feel as a result of owning life insurance (69%), the report states.
When asked what provides Americans with the greatest peace of mind, the generations once again stood apart:
–18 – 34 years olds (35%) are significantly more likely than those ages 35-54 to have peace of mind as a result of knowing all their debts are paid.