It may come as no surprise that the reasons why people buy life insurance depends greatly on their age – the time of life they are in.
Northwestern Mutual conducted a survey that sought to discover the different reasons why people buy life insurance according to age and lifestyle.
Over 55:
The poll found that 36% of Americans over 55 who own life insurance bought it as a direct result of getting married while 31% bought it to utilize as part of a retirement plan.
Those 55 and up derive the most peace of mind knowing that they will have enough money to live in retirement.
45 to 54
Forty-five to 54 year olds who own life insurance were spurred to do so because of marriage (39%) followed by retirement planning (25%) and home ownership (25%). This age group felt most comfortable due to their purchase of life insurance with 69% of them saying that they feel secure as a result of owning life insurance.
34 to 44
34% of those between 35 and 44 and 36% of those between 45 and 54 derive the most peace of mind knowing that their family will be provided for in case of an unexpected death while 68% of those between 18 and 34 and 58% of those between 45 and 54 who have insurance were likely to have purchased it to provide for their loved ones.
18 to 34
Americans who are between 18 and 34 years old who have some degree of life insurance protection are most likely to have been prompted to purchase it because of the birth of a child. When this group was asked what gave them the greatest peace of mind, 35% of 18 to 34 year olds felt that it was knowing that their debts were paid off.
“It is important to have a financial plan that can both support you and evolve across the span of your lifetime as your financial situation changes. Life insurance can be a stable and yet flexible cornerstone of a financial plan—protection if you need it while also helping you to meet financial goals at various life stages,” said David Simbro, senior vice president at Northwestern Mutual.