Americans believe life insurance is better investment than stocks and bonds

 As tough economic times resulted in financial losses for many Americans more people in the United States today believe that the best option to invest their money is life insurance rather than stocks or hoe equity. A recent report titled Renewed Relevancy of Life Insurance in Stormy Economic Times issued by Prudential Financial, Inc.(, says that 2/3 of consumers think market conditions reinforce the need to have adequate life insurance coverage.

Meantime, the study also shows that only 24% of these have reconsidered their coverage and even fewer have made changes.

“The market collapse last year led all of us to reassess our needs, and cut down on spending,” said Mark Hug, chief marketing officer of Prudential’s Individual Life Insurance business. “People know life insurance can fill needs broader than just providing a death benefit.” 

The study also found that:

• Americans consider traditional life insurance protection as an essential safety net, with two-thirds saying they view it as one of the safer financial products available today
• Compared with 18 months ago, about half of those interviewed feel less confident financial vehicles such as stocks and bonds or the home equity they may have built up will meet retirement goals, outpace inflation or provide a comfortable nest egg
• Confidence in life insurance has remained relatively unscathed, with 78% equally or more confident their life insurance death benefit will be there to protect their loved ones. 

“Unemployment concerns are also having an impact,” Hug noted. Two-thirds of those surveyed realized they need individual coverage in addition to that provided by an employer. Yet 55% have twice their annual income or less aside from coverage they get at work, the survey showed.