A new LIMRA study found that 6 out of 10 Generation X and Y Americans say losing their income for 6 months due to accident or illness would have a significant or drastic impact on their families’ financial well-being.
“Our study revealed that younger generations were more likely to feel the financial impact of income loss more severely than Baby Boomers,” noted Nilufer Ahmed, senior research director, LIMRA Insurance Research. “The reaction was just as pronounced in the event of death of the primary wage-earner, where about 6 in 10 Gen X and Y consumers thought their households would be negatively affected compared with just over one third of Boomers.”
The study, “U.S. Consumers: The Generations,” examines the current financial situation of Baby Boomers, Generations X and Y, focusing on their financial concerns, goals, attitudes and behaviors. The results of the survey represent responses from more than 6000 consumers age 25-64 (with household incomes of $25,000 – $149,000) who were the financial decision makers of the household.
Not surprisingly, life insurance ownership improves with each older generation. The study shows that only two-thirds of Gen Y consumers have any kind of life insurance compared with three quarters of Gen X and Boomers. In addition, fewer Gen Y consumers own individual life insurance (34 percent) than Gen X consumers (45 percent). More than half of Baby Boomers report owning individual life insurance (52 percent).