Prudential: Americans Willing to Pay for Guarantee

Seventy percent of surveyed Americans believe products with guarantees are worth the cost, according to a study about life insurance by Prudential Financial, Inc., an insurance provider.

The large majority (94%) of those who own a life insurance policy value the guarantee it provides, according to a release of the results.

The study showed 72% indicate the economic downturn has “reinforced and deepened concerns about providing for loved ones,” according to Gail Van Dalen, vice president, Individual Life Insurance at The Prudential Insurance Company of America. “Knowing their family will be protected provides peace of mind in an economy that has left many people feeling uncertain about their investments and financial future,” she said.

Prudential said the survey also found that consumers value life insurance policy enhancements. Early access to policy benefits in the event of terminal illness ranked at the top of the list, with 61% expressing interest in this feature. Other guarantees that generated interest included: the ability to waive the premium if they become disabled (58%); waiver of premium for up to one year upon the loss of a job (55%); and an increased death benefit should the insured die in an unforeseen accident (54%).
Financial stability (90%) and reputation (82%) are important factors people consider when selecting a life insurance company in the current environment, according to Prudential.

Prudential’s Life Insurance – A Guarantee in Uncertain Times” is part of the Taking a Pulse of American’s Changing Life Insurance Needs survey that was fielded via the Internet between June 24 and July 1. The survey was conducted for Prudential by independent research firm MRops.