Life Happens and LIMRA have published survey results highlighting a serious financial services market analysis problem: American survey takers appear to be hazy about what financial services products they own — and more reliable comparison numbers are hard to find.
The groups focused attention on survey takers’ awareness gap in a batch of data from their 2019 Insurance Barometer Study, which was based on an online survey of about 2,000 U.S. adult consumers who are financial decision makers in their households.
The survey team asked the participants about their ownership of various types of financial services products.
Here’s what the survey team found participants thought they owned:
- Life Insurance: 57%.
- Disability Insurance: 20%.
- Long-Term Care Insurance (LTCI): 15%.
- Annuities: 12%.
One difficulty with interpreting the data is that the survey team did not say in the survey results summary available to the public how, or if, they defined the product types for the survey takers. Some survey participants, for example, might have been referring to life insurance policies or annuity contracts with long-term care benefits options when they answered the question about LTCI ownership.
But the ownership rates reported for disability insurance and annuities appear to be low, and the ownership rate reported for LTCI appears to be high.
The Council for Disability Awareness has reported that about 49% of U.S. workers get some kind of employer-paid disability insurance from their employers.