AAA: NEARLY HALF OF MICHIGAN RESIDENTS DO NOT HAVE LIFE INSURANCE
NEWS RELEASE CONTACT: AAA – The Auto Club Group Susan Hiltz, Public Affairs Director, Michigan C: 586.940.0278 - firstname.lastname@example.org
AAA: NEARLY HALF OF MICHIGAN RESIDENTS DO NOT HAVE LIFE INSURANCE Common Myths Can Keep People from Getting Important Coverage
DEARBORN, MICHIGAN (September 5, 2018) — September is Life Insurance Awareness Month and a recent AAA Consumer Pulse™ survey finds nearly half (46%) of Michigan residents do not have a life insurance policy. Although most people do not like to think about their mortality, but in order to have a more secure financial future for one’s family, having a plan in place for the inevitable is essential.
“Life insurance is a crucial part of financial and insurance planning,” said Michael Fletcher, Assistant Vice-President of Life Insurance Sales for 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 may prevent them from obtaining important coverage. Some common misconceptions include:
Myth: Life insurance costs too much.
Fact: Many people tend to overestimate the cost of a life insurance policy. Michigan residents cite cost as the number one reason they have not purchased a policy. In reality, a life insurance policy can be quite affordable. For instance, a 35-year-old woman in excellent health who has never used nicotine may get $100,000 of coverage for as little as $8 per month.* That's less than $1 a day.
Myth: You can’t have multiple life insurance policies
Fact: You can have more than one life insurance policy. Someone with coverage through work, or a policy with a shorter term period, might decide to supplement it with additional coverage from another policy that can provide coverage for life. Employer coverage is often not portable. More than half (56%) of Michigan life insurance policyholders have coverage through their employer. The majority (64%) of those individuals with employer coverage do not have another life insurance policy and one-third (35%) are concerned about losing their life insurance benefits if they lose their job.
Myth: I don’t need life insurance; I’m single.
Fact: There are many scenarios that make life insurance a good idea for single people. You may have aging 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 favorite charity. And some life insurance policies can have value other than a death benefit. Universal Life insurance, for example, can grow cash value over time, and loans can be taken out for emergencies on the value of the policy at a fixed rate (just make sure to pay it back).
Myth: I can’t get life insurance because I’m over age 65.
Fact: There are many types of policies, such as Whole Life insurance available to individuals over age 65, 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. The best thing you can do is talk with your life insurance agent about the right coverage for you,” said Susan Hiltz, Michigan public affairs director for AAA - The Auto Club Group.
Of those Michigan residents who have a life insurance policy, two in five (40%) have a policy valued between 1-3 times’ their annual salary. Selecting the amount of coverage you need will vary greatly from person to person. AAA Life Insurance Company offers planning tools such as the Life Insurance Needs Calculator, to help calculate items to consider when looking for a policy, such as final expenses, debt, and replacement income.
For more information and education on AAA Life Insurance products, AAA life insurance specialists are available at all AAA branch offices in Michigan or visit AAA.com/life.
The AAA Consumer Pulse™ Survey was conducted online among residents living in Michigan from February 7, 2018 – February 19, 2018. A total of 401 residents completed the survey, with 218 residents with a life insurance policy. Results have a margin of error of ± 6.6 percentage points. Responses are weighted by gender and age to ensure reliable and accurate representation of the adult population (18+) in Michigan.
AAA Life Insurance Company is licensed in all states except NY. Life insurance and annuities are issued by AAA Life Insurance Company, Livonia, MI. 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
AAA in Michigancelebrated its 100th Anniversary - A Century of Service in 2016 and has over 1.4 million members across the state. It is part of The Auto Club Group (ACG). Connect with us on Facebook and LinkedIn.
The Auto Club Group (ACG) is the second largest AAA club in North America. ACG and its affiliates provide membership, insurance, financial services and travel offerings to over 9.6 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 59 million members in the United States and Canada and whose mission includes protecting and advancing freedom of mobility and improving traffic safety. Motorists can map a route, identify gas prices, find discounts, book a hotel, and access AAA roadside assistance with the AAA Mobile app for iPhone, iPad and Android. Learn more at AAA.com/mobile. Visit AAA on the Internet at AAA.com.