AAA: Four in Ten Illinoisans Do Not Have Life Insurance

Life Insurance Awareness Month marks time for people to determine
needs

AURORA, Ill.–(BUSINESS WIRE)–Most people do not like to think about their mortality, but in order to
have a secure financial future for your family and loved ones, having a
plan in place for the inevitable is essential. According to a recent AAA Consumer
Pulse™ survey, forty percent of Illinoisans do not have a life
insurance policy. In fact, nearly a quarter (24%) of residents does not
see the need to have one.

“Life insurance is a crucial part of financial and insurance planning,”
said Michael Fletcher, Assistant Vice President of Life Insurance
Operations, AAA – The Auto Club Group. “Many people either don’t have a
policy or not enough coverage and all it would take is one accident or
terminal illness to leave your family in financial peril.”

Many people have preconceived notions about life insurance, which are
often times incorrect:

1. Myth: Life insurance costs too much.

Truth: Most people tend to overestimate the cost of a policy.
Most Illinoisans (62%) believe $250,000 term life policy would cost $200
or more a year. A life insurance policy can be quite affordable. For
instance, a 30-year-old, non-smoking woman can get a $250,000 term life
policy for under $150 a year. That’s less than $3 a day.

2. Myth: I’m a stay-at-home parent; I don’t need life insurance.

Truth: Stay-at-home parents provide a valuable contribution to
the household, even if they are not earning a paycheck. A surviving
spouse who is employed may need money for child care, housekeeping, and
other household tasks that were previously performed without financial
compensation.

3. Myth: I don’t need life insurance; I’m single.

Truth: There are many scenarios that make life insurance a good
idea for single people. You may have elderly parents who depend on you
for their care (or will in the future). You may want to leave funds for
a family member, such as a niece or nephew, or even make a financial
contribution to an alma mater or a beloved charity. And some life
insurance policies can have value other than a death benefit. Universal
life insurance, for example, grows cash value over time, and loans can
be taken out on the value of the policy at a fixed rate.

4. Myth: I can’t get life insurance because I’m a senior citizen.

Truth: There are policies available to senior citizens that can
play an important role in the handling of final expenses, which might
otherwise burden a surviving spouse or other family members. The sooner
you take action to obtain a policy, the more coverage choices and
attractive premiums you will find.

5. Myth: I don’t need to think about life insurance because I have it
through my work.

Truth: Nearly two-thirds (63%) of Illinoisans who have life
insurance have employer-provided life insurance. While that can
certainly be a good starting point, people do need to be aware of what
would happen if that company benefit changed or if they left the
company. Often times a life insurance policy that isn’t company provided
can be a more stable and cost-effective option.

“These are just a few of the common misconceptions some have about life
insurance,” said Fletcher. “The best thing you can do is talk with your
life insurance agent about the correct coverage for you, such as the AAA
Life Insurance specialists at your local AAA branch.”

It is never too late or too early to invest in a life insurance policy.
Go to AAA.com/life
for more information and AAA Life Insurance products.

AAA Consumer Pulse™ Survey

The AAA Consumer Pulse™ Survey was conducted online among residents
living in The Auto Club Group territory from July 13, 2015 to August 1,
2015. Approximately 400 residents in Wisconsin completed the survey. The
results have a margin of error of ± 4.9 percentage points. Responses are
weighted by gender and age to ensure reliable and accurate
representation of the adult population (18+) in Wisconsin.

About The Auto Club Group

The Auto Club Group (ACG) is the second largest AAA club in North
America. ACG and its affiliates provide membership, travel, insurance
and financial services offerings to approximately 9 million members
across eleven states and two U.S. territories including Florida,
Georgia, Iowa, Michigan, Nebraska, North Dakota, Tennessee, Wisconsin,
Puerto Rico and the U.S. Virgin Islands; most of Illinois and Minnesota;
and a portion of Indiana. ACG belongs to the national AAA federation
with more than 55 million members in the United States and Canada and
whose mission includes protecting and advancing freedom of mobility and
improving traffic safety.

Contacts

AAA Chicago
Beth Mosher
630.328.7234 – office
bgmosher@aaachicago.com