Traditional Life Insurance Has New Appeal To Younger Buyers: Survey Shows Under-40s Want Financial Security Sooner Rather Than Later

NEW YORK, Oct. 5, 2010 (GLOBE NEWSWIRE) -- According to a new national survey of owners of whole life insurance by The Guardian Life Insurance Company of America (Guardian), New York, N.Y., today's policy buyers under the age of 40 are choosing whole life over other asset alternatives, based in large part on a strong desire to be financially secure as soon as possible.

The survey also revealed that a significant number of these younger policy holders are opting to pay for their policies quickly, often over ten years or less. Of those surveyed by Guardian, 35% of whole life purchasers under 40 said they wanted to pay off their premiums as quickly as possible, rather than using the more traditional approach of paying over a lifetime.

"This finding underscores a pronounced desire among Millenials and Gen Xers for financial security at an early age," said Michael Ferik, senior vice president of individual life at Guardian speaking at Guardian's second annual Whole Life Forum here today. At Guardian, purchases of "limited pay" policies, which can be paid-up over a shorter term, were up 152% as of June 30, compared with the same period in 2009.

The survey, spurred by an increase in Guardian whole life purchases by younger buyers in recent years, revealed that insurance buyers under age 40 are motivated by the desire for financial security "as soon as possible" (74%), as well as a desire to be debt-free as soon as possible (76%). These figures contrast with 68% of those over 40 who seek financial security as soon as possible and 69% of over 40s who believe it's important to be debt-free as soon as possible.

"Perhaps due to the historically high college loan burden carried by today's graduates, this appreciation of financial security and desire to be debt-free reflect a sea change in attitude from the 'live for today' ethos Boomers were known for," said Ferik.