Financial Stability

Gaps Found Between Personal, Financial Wellbeing Perceptions & Realities

Education and innovation paramount to helping Americans prepare for brighter future

The new survey was conducted online within the United States by The Harris Poll on behalf of Legal & General America from February 22-26, 2024 among 2,060 U.S. adults ages 18+.

FREDERICK, Md., (June 4, 2024) – A majority of Americans think they’re on the right path when it comes to financial stability, according to a new survey from Legal & General America (LGA). But their responses are in stark contrast to U.S. government data.

While the LGA survey revealed that 69% of Americans felt financially stable, the Federal Reserve’s Economic Well-Being of U.S. Households in 2022 report indicated that just 32% of Americans felt the largest expense they could cover using savings was under $500.

“This is just one example of a perception gap that’s creating barriers for Americans and preventing them from taking charge of personal and financial wellbeing,” said Mark Holweger, CEO of Legal & General America. “We see that gap reflected in the number of Americans who purchase life insurance policies.”

Conducted online by The Harris Poll on behalf of Legal & General America in February, the survey accumulated insights from more than 2,000 U.S. adults. Findings include:

  • Most Americans expect to live longer than the average American, with 73% citing they assume to live longer than 77; the current average life expectancy 76.4, according to the CDC’s mortality in the United States 2021 report.
  • Fifty-eight percent of Americans prefer to work on their finances alone rather than with a financial advisor; when it comes to estate planning, 48% favor working independently instead of enlisting a professional.
  • Fifty-seven percent of 18–34-year-olds said they’ve had open conversations with their families about finances while growing up compared to only 31% of those aged 65 and older.
  • More than two in five Americans (44%) would rather talk about their dating life/history than their finances with their family.
  • More than half of Americans (51%) purchased/would purchase life insurance policies to leave money behind for children or spouses.
  • The Midwest cited leaving money behind for family as a driver for life insurance purchases more frequently than other regions, with 59% responding it’s a reason for the purchase (compared to 48% in the Northeast, 50% in the South and 47% in the West).
  • Men would purchase/have purchased life insurance as a salary replacement at a higher rate (31%) than women (24%).

“Americans’ confidence in taking matters into their own hands underscores the necessity for life insurers to prioritize accessible education and streamlined processes,” said Holweger. “By helping consumers understand the value of a life insurance policy and facilitating a smooth application process, we’re fully committed to helping create brighter futures for more Americans.”

Legal & General America is focused on helping close the individual insurance gap in the U.S. and creating brighter financial futures for more Americans. Recent innovations and technological advances to its underwriting and application process aim to make finding coverage easier and faster for Americans, with a 36% instant decision rate and 75% of decisions made without additional lab work, according to LGA’s metrics reported YTD through February. Through 2023, the company’s term life insurance policy counts increased by 35%, dramatically outperforming the industry’s 3% increase, with the company poised for continued growth throughout 2024.

For more information on LGA, please visit www.lgamerica.com.

 

 

 

Survey Methodology
This survey was conducted online within the United States by The Harris Poll on behalf of Legal & General America from February 22-26, 2024 among 2,060 U.S. adults ages 18+. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. For complete survey methodology, including weighting variable and subgroup sample sizes, please contact audrey.wayne@kemperlesnik.com
About Legal & General America
LGA is one of the nation’s leading life insurers, and number three in term life insurance sales in the United States (LIMRA Q3 2023 report). LGA’s insurance products are sold nationwide through its companies Banner Life Insurance Company in 49 states and D.C. and William Penn Life Insurance Company of New York in New York. LGA has an A.M. Best rating of A+ (Superior) – 2nd highest out of 15 categories and AA- from Standard & Poor’s (Very Strong capacity to meet financial commitments). Ratings are as of November 3, 2022, and apply to Legal & General America Group and its subsidiaries Banner Life Insurance Company and William Penn Life Insurance Company of New York. All ratings are subject to change.
About Legal & General Group, Plc
Established in 1836, Legal & General is one of the UK’s leading financial services groups and a major global investor, with over £1.2 trillion in total assets under management* of which 39% is international. We have a unique and highly synergistic business model, which continues to drive strong returns. Even so, the Board continues to weigh investment carefully against the relative attractiveness of returning additional capital to shareholders. Legal & General provides powerful asset origination and management capabilities directly to clients, which also underpin our leading retirement and protection solutions. We are a leading international player in Pension Risk Transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. In 2022, L&G’s Protection business gave peace of mind to more than 6.3 million UK life insurance, 1.8 million group and 1.5 million US customers, taking in £3.1 billion of gross written premiums. Our purpose is to improve the lives of our customers and create value for our shareholders. Through inclusive capitalism, we are investing in long-term assets, such as real estate and infrastructure, that can help build a better society for the future.