State Farm Life Insurance Survey: Despite Importance, 74 Percent of Couples Rarely or Never Talk About Life Insurance

BLOOMINGTON, Ill., Sept. 29 /PRNewswire/ -- A new State Farm Life Insurance Company survey shows that since the economic downturn in 2008 and the uncertainty it has created for people's finances, a majority of people say life insurance is more important than it was two years ago. However, 74 percent of couples say they rarely or never discuss the topic. The survey found that talking about life insurance is particularly difficult for men and women who are primary earners for the family. These respondents say key reasons for avoiding the topic include stress over daily economic pressures and concern that a partner might react negatively – especially in the event of a job loss.

The survey, conducted by KRC Research, shows that among couples who are unlikely to discuss life insurance, the topic is especially concerning for women when faced with the prospect of becoming the primary earner for the family. When asked about why they would not initiate a conversation about life insurance, respondents cited financial stress as very or somewhat important. Women were significantly more likely to remain silent with 64 percent saying they would be too stressed to initiate a conversation with their spouse. This compares with 47 percent of men faced with the prospect of being the sole breadwinner.

"This survey shows that, at a time when couples should be sitting down to discuss how to prepare for the unexpected, far too many remain silent," said Joe Monk, senior vice president and chief administrative officer, State Farm Life Insurance. "As awkward as it can be to discuss the potential death of a family member, an uncomfortable discussion today can prevent a devastating financial impact tomorrow."

Avoiding the Awkward Conversation

In the survey, 62 percent of men and women said that given the economic downturn and the uncertainty it has created for finances, having life insurance is much or somewhat more important than it was two years ago. At the same time, the survey found that these economic pressures along with concerns over a partner's reaction are important reasons why many couples are avoiding the topic entirely.

This is especially true for men and women faced with the prospect of becoming primary income earners for the family. When asked about why they would not initiate a conversation about life insurance, they cited the following factors as very or somewhat important:

• Seventy-four percent said that avoiding the conversation comes from the pressure of meeting immediate household financial needs as the sole income earner.
• Fifty-one percent of respondents answered that should a partner lose a job, that time would not be the best to bring up a subject that might make them feel even worse.

But despite economic pressures, most people in the survey still indicated that having insurance coverage for someone at home caring for children is just as important as someone earning an income. According to the survey, 85 percent of respondents strongly or somewhat agreed that life insurance is just as critical for a spouse or partner who stays at home and cares for children as it is for the spouse or partner who is the primary income earner.

Earlier this year, a study by the research firm, LIMRA, found that nearly one third of U.S. households currently have no life insurance, the highest level in more than forty years.

Reality Check

The State Farm® survey also found that because of the challenging economy, more than half of Americans are now focused solely on protecting what they have versus working to achieve their financial dreams. When asked to choose what best described their current financial situation, just 39 percent said they were working to grow what they have to achieve their financial dreams. However, the majority (52 percent) said they were working to protect what they have to break even.

"Today, more Americans are struggling with job losses, pay cuts and other financial setbacks. These factors amplify feelings of anxiety and create a greater need to ensure the security of loved ones," said Professor Mary Quist-Newins, State Farm Life Insurance Chair for Women and Finance at The American College. "Women in particular appear to be especially silent on this topic and this is troubling when increasing numbers of women are becoming primary income earners for their families."

First Steps

State Farm offers the following suggestions for couples who struggle with discussing finances and life insurance:

• Make A Plan. It can be empowering for couples to agree on goals and steps towards achieving a more secure future. For couples experiencing severe economic setbacks, it can be reassuring to have a strategy in place to get back on their feet financially and to prepare for the unexpected.
• Start Small. Often couples may feel the gap is too great between what they have to work with financially today versus what they would like to have in the future. But starting with small steps - such as getting educated about life insurance basics - can set the stage for follow-on steps later.
• Consult an expert. Bringing in a knowledgeable outside perspective can make the process of discussing life insurance easier and less stressful. These experts have experience guiding the conversation and answering questions. This can help avoid misunderstandings and unneeded stress.

State Farm has 17,800 insurance agents across the country. State Farm agents can take the stress out of life insurance by simplifying the process and by helping families select the coverage that fits their needs and budget. For more information or to find an agent, visit www.statefarm.com.

About the Survey

This survey was commissioned by State Farm Life Insurance Company to gauge attitudes around life insurance and the factors that influence those attitudes. The survey was conducted by KRC Research and was a national random digital dial telephone survey of 1,001 adults ages 18 and older within the United States. Interviews were conducted by telephone between Aug. 13 – 18, 2010. The estimated margin of error is +/- 3.1 percentage points for the entire sample and is higher among subgroups.

About State Farm®:

State Farm insures more cars and homes than any other insurer in the U.S., is the leading insurer of watercraft and is also a leading insurer in Canada. Our 17,800 agents and more than 68,000 employees serve 81 million policies and accounts – more than 79 million auto, fire, life and health policies in the United States and Canada, and nearly 2 million bank accounts. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 34 on the Fortune 500 list of largest companies. For more information, please visit statefarm.com® or in Canada statefarm.ca®.

About KRC Research

KRC Research is a leader in communications research. Our ability to use research to improve communications outcomes—from public relations to public affairs to advertising—sets us apart from traditional research firms, as does our approach, which is creative, practical and fast. Our specialties include research among hard-to-reach audiences, research to drive media attention, brand and reputation research and public policy research. KRC's clients include Fortune 500 corporations, trade associations and non-profits. Visit our website at www.krcresearch.com.

SOURCE State Farm