Even in high-income U.S. households, many consumers suffer from a lack of knowledge about permanent life insurance
Analysts at Allianz Life Insurance Company of North America have reported that finding in a summary of results from a recent online survey of 803 U.S. adults ages 35 to 60. All of the participants included in the sample had an annual household income of at least $100,000.
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About 45% of the participants with help from financial professionals, and 26% of the participants without help from financial professional, said they already have whole life insurance, universal life insurance or some other form of life insurance that can build up a cash value.
But the Allianz Life analysts say many of the consumers surveyed were hazy on how permanent life insurance works.
One of the awareness indicators the analysts addressed was consumers’ understanding of permanent life policy loan options.
Only 48% of the survey participants knew that the holder of a permanent life policy can borrow against the cash value of the policy.