Times Are Hard Financially, but Things Could Be Worse

According to a press release from ING, an insurance provider, the top scenario respondents say would most negatively impact their financial future is having their savings stolen because of fraud/theft (77% say it would have an extremely or very negative impact). Sixty-seven percent of Americans surveyed indicated their death or the death of their spouse or partner would most negatively impact their family’s financial future.

Of 15 events or scenarios listed, falling home prices, a stock market crash, Social Security becoming insolvent, an economic recession, a pay cut, and higher interest rates on loans and mortgages all ranked as having less of a negative impact on respondents’ financial future than their death or the death of their spouse or partner. Yet, nearly a quarter of the 86% of people who thought they should have life insurance, do not have it, the press release said.

The survey also found younger Americans tend to see life insurance as playing a bigger role in wealth protection and wealth accumulation than do older Americans. Younger respondents indicated they look to life insurance for taking care of a wider range of needs, including funeral costs, children’s future education costs, and several years of household expenses.

Respondents who have life insurance primarily consulted with an insurance agent or financial adviser about how much life insurance they needed (33%) – significantly more than those who consulted with friends or family members or who chose a standard life insurance option available through work, ING said.

The survey found a majority of respondents (58%) say they do a better job saving and protecting their money than their parents do or did; and even more (65%) say they do a better job saving and protecting money than their friends and acquaintances.

Commissioned by ING and conducted by Ipsos in late 2007 and early 2008, the ING Life Insurance Study included over 1,000 randomly-selected participants.