Nearly Half Do Not Have Life Insurance

AAA: NEARLY HALF OF FLORIDIANS DO NOT HAVE LIFE INSURANCE

TAMPA, Fla. (December 9, 2016) — Most people do not like to think about their mortality, but in order to have a more secure financial future for your family and loved ones, having a plan in place for the inevitable is essential. According to a recent AAA Consumer Pulse™ survey, nearly half (44%) of Floridians do not have a life insurance policy.

“Life insurance is a crucial part of financial and insurance planning,” said Gene Calkins, Vice-President of Insurance, AAA – The Auto Club Group. “Many people either don’t have a policy or not enough coverage, and all it would take is one accident or terminal illness to leave your family in financial peril.”

Many people have preconceived notions about life insurance, which are oftentimes incorrect:

1. Myth: Life insurance costs too much.

   Truth: Many people tend to overestimate the cost of a policy. Floridians cite cost as the number one reason they have not purchased a policy. The majority of residents (56%) estimate a policy premium can cost anywhere from $500-$3,000. A life insurance policy can be quite affordable. For instance, a 35-year-old woman in excellent health who has never used nicotine can get $100,000 of coverage for as little as $8 per month.* That's less than $1 a day.

2. Myth: I’m a stay-at-home parent; I don’t need life insurance.

   Truth: Stay-at-home parents provide a valuable contribution to the household, even if they are not earning a paycheck. A surviving spouse who is employed may need money for child care, housekeeping, and other household tasks that were previously performed without financial compensation. 

3. Myth: I don’t need life insurance; I’m single.

   Truth: There are many scenarios that make life insurance a good idea for single people. You may have elderly parents who depend on you for their care (or will in the future). You may want to leave funds for a family member, such as a niece or nephew, or even make a financial contribution to an alma mater or a beloved charity. And some life insurance policies can have value other than a death benefit. Universal life insurance, for example, grows cash value over time, and loans can be taken out on the value of the policy at a fixed rate.

4. Myth: I can’t get life insurance because I’m a senior citizen.

   Truth: There are policies available to senior citizens, that can play an important role in the handling of final expenses, which might otherwise burden a surviving spouse or other family members. The sooner you take action to obtain a policy, you will receive more coverage choices and more attractive premiums.

“These are just a few of the common misconceptions some have about life insurance,” said Josh Carrasco, spokesman, AAA - The Auto Club Group. “The best thing you can do is talk with your life insurance agent about the correct coverage for you, such as the AAA Life Insurance specialists at your local AAA branch.”

Of those Floridians who have a life insurance policy, nearly half (47%) have a policy valued between 1-3 times their annual salary. Selecting the amount of coverage you need will vary greatly person to person. The AAA Life Insurance Company offers tools, such as, the Life Insurance Needs Calculator, which helps individuals calculate things like final expenses, debts, replacement income, and other expenses. For more information on AAA Life Insurance products go to AAA.com/life.

AAA Consumer Pulse™ Survey
The AAA Consumer Pulse™ Survey was conducted online among residents living in The Auto Club Group territory from June 10, 2016 - June 29, 2016. Approximately 400 residents in Florida completed the survey. The results have a margin of error of ± 4.9 percentage points. Responses are weighted by gender and age to ensure reliable and accurate representation of the adult population (18+) in Florida.

About The Auto Club Group
The Auto Club Group (ACG) is the second largest AAA club in North America.  ACG and its affiliates provide membership, travel, insurance and financial services offerings to over 9 million members across eleven states and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Dakota, Tennessee, Wisconsin, Puerto Rico and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana.  ACG belongs to the national AAA federation with more than 56 million members in the United States and Canada and whose mission includes protecting and advancing freedom of mobility and improving traffic safety.

About AAA Life Insurance Company
Life insurance and annuities are issued by AAA Life Insurance Company, Livonia, MI. AAA Life Insurance Company is licensed in all states except NY. CA Cert of Authority #07861. Product availability and features may vary by state. AAA Life Insurance products are not available outside the United States. Visit aaalife.com for eligibility requirements and restrictions.  

*This is an outline of the coverage provisions and does not contain all of the benefits and exclusions. For complete details of coverage, please refer to the Traditional Term Life Policy Form Series: ICC11-1201/TL-1201