As we approach Thanksgiving and the upcoming holiday season, money worries tend to creep into people’s minds. The emphasis on shopping and consumerism can create stress and concern, particularly for many families that are struggling to make ends meet.
Among the benefits of buying life insurance and lifetime income products, like annuities, is the immediate peace of mind these products can provide.
Life insurance offers peace of mind today by providing a safety net for the policyowner’s family. When asked about their motivation for purchasing life insurance, consumers describe how the product meets their need to have peace of mind. In fact, LIMRA research finds 9 in 10 life insurance owners say it's peace of mind.
The top concern for pre-retirees and retirees is the fear of running out of money. A recent Secure Retirement Institute (formerly LIMRA SRI) study finds nearly half (45%) of all Americans would be willing to convert a portion of their assets into a guaranteed lifetime income stream. Securing this guaranteed income stream would ensure they would never face the prospect of running out of money in their retirement. The study found interest in guaranteed lifetime income is especially strong among Gen Xers and Millennials, who are not likely to have a pension that they can rely on.
Data also show, however, that those closest to or in retirement are interested as well. In fact, 43% of pre-retiree and retiree investors would prefer to trade off most other income features in favor of guaranteed lifetime income. Why? The number one reason given is “peace of mind,” followed by the estimation that guaranteed lifetime income “will produce stable and predictable monthly income,” and reduce their concerns about “running out of money in retirement.”
Best wishes for a happy Thanksgiving!