Global Study Shows Americans Caught in Cycle of Anxiety
December 12 2007 - 8:00AM
PR Newswire (US)
Americans Lag in Acting to Protect Against Life Risks NEW YORK,
Dec. 12 /PRNewswire-FirstCall/ -- Among the findings released today
from the AXA Equitable Protection Report, the life risks that
insurance covers -- death, financial hardship, serious illness and
reduction in standard of living -- are on the minds of Americans,
more so than people in 10 other countries surveyed. This unique
survey -- developed by AXA to enhance its understanding of the
issues, attitudes and behaviors surrounding life risks and
protection coverage -- is available online at
http://www.axa-equitable.com/. "Overall, our survey findings
indicate that many Americans appear to be caught in a cycle of
anxiety," says Ken Gelman, Vice President and Director of Customer
Insights for AXA Equitable Life Insurance Company. Despite their
concerns, Americans lag in acting to protect against the impact of
such negative life events." According to the report, 87 percent of
Americans with a spouse or partner have spoken about life risks
with that person. A third of them, however, discuss it only in
passing, and fewer than half of Americans surveyed have spoken to
an insurance agent or broker about preparing for life risks. Many
Can't Explain Inertia While 63 percent of Americans believe life
insurance protects their loved ones and provides peace of mind, 34
percent of them have not purchased coverage themselves and 18
percent have no coverage at all. "Americans are thinking and
talking frequently about life risks," says Gelman, "but their
desire for peace of mind does not always result in action to
protect their partners and children. And yet, when given an
opportunity to explain, almost half can't state reasons as to why
they don't act." Misguided Reliance on Employer Protection The most
common reason Americans give for not purchasing life insurance is
that it's provided by their employer. Compared to people in the
other countries surveyed, Americans are the most likely to be
covered by employer- provided insurance and also less likely to
purchase insurance products themselves. However, for many, a
serious gap in coverage exists. Employer-sponsored group life
insurance coverage is typically tied to a multiple of an employee's
income. The average group coverage of all American households is
$153,900*. A calculation of existing coverage and needs, developed
as part of the 2007 AXA Equitable Protection Report, reveals that
on average Americans 25 to 65 years of age have an insurance gap of
$180,000. Families with financially dependent children have on
average the highest gap -- $371,000. "Despite this gap, many
Americans have been lulled into a false sense of security," says
Gelman. "This is true even for high net worth respondents. Our
study reveals that those who feel confident about their insurance
coverage are often the most unrealistic about their protection
needs." Nearly half of those with the highest lack in coverage --
$755,000 -- describe themselves as "feeling well insured." Other
key findings from the U.S. respondents include: -- Women are
uniformly more likely to talk about life risks than males. And yet
27 percent of females with financially dependent children say that
while they are aware of life accidents, they do not think about the
consequences. -- Health matters most. When asked, the majority of
Americans say serious illness is the negative event most likely to
happen to them. Very few think that they'll be involved in a plane
crash or terrorist incident. -- There's a widespread distaste for
risk. One in four Americans say that they are highly aware of life
accidents and hate taking risks. "While we cannot eliminate all
anxiety, says Gelman, "the more we know about perceptions and
behaviors toward risks and insurance, the better equipped we are to
provide advice and solutions that provoke Americans to act to
secure their loved ones against hardships." The AXA Equitable
Protection Report is part of the company's continued effort to
enhance its understanding of the issues, attitudes and behaviors
surrounding life risks and protection coverage, for the ongoing
purpose of developing superior financial planning products and
solutions. Survey respondents included both workers and non-workers
age 25 to 65 in four distinct life-stage categories: -- Single:
Households composed of one person with no children and aged less
than 40 years old -- Pre-nester: Households composed of a couple
(married or living as a couple) with no children -- Nester: All
types of households with at least one financially-dependent child
-- Post-nester: All types of households with no more
financially-dependent children or households composed of one person
with no children and aged more than 40 years-old. The research firm
Gfk Group managed the survey globally for the AXA Group. Local
firms fielded the questions in each country during May 2007. A
total of 4,009 people were interviewed in Australia, Belgium,
France, Germany, Hong Kong, Italy, Japan, Spain, Switzerland, the
United Kingdom and the United States. The main sample from the U.S.
included 360 people, constituting a national representation in
terms of gender, age, occupational status and region. To access the
entire survey conducted by AXA Equitable, go to
http://www.axa-equitable.com/. About AXA Equitable AXA Equitable
Life Insurance Company, which has been in business since 1859, is a
leading nationwide issuer of life insurance and annuity products.
The company had more than 11,000 employees and sales personnel and
approximately 4.8 million policy/contract holders nationwide as of
Dec. 31, 2006. AXA Equitable is solely responsible for its life
insurance and annuity obligations. AXA Equitable Life Insurance
Company, New York, NY, is one of the premier U.S. organizations
providing life insurance and annuity products and services for the
financial services market. Variable products are co-distributed by
affiliates AXA Advisors, LLC and AXA Distributors, LLC. AXA
Equitable's parent company, AXA Financial, Inc., is a member of the
global AXA Group. AXA Group's operations are geographically
diverse, with major operations in Western Europe, North America,
and the Asia/Pacific region. The AXA ordinary share is listed on
the Paris Stock Exchange and trades under the symbol AXA. The AXA
American Depositary Share is also listed on the NYSE under the
ticker symbol AXA. AXA Equitable is a sponsor of the Variable
Annuities Knowledge Center (http://www.variableannuityfacts.org/),
an online resource aimed at helping consumers understand the facts
surrounding variable annuities. The Variable Annuities Knowledge
Center is operated by a stand-alone non-profit organization and it
is overseen by an independent advisory board. * Source: 2005 LIMRA
International "Trends in Life Insurance Ownership Among U.S.
Households" report DATASOURCE: AXA Equitable CONTACT: Discretion
Winter, +1-212-314-2968, , or Matt Klein, +1-212-314-2919, , both
of AXA Equitable Web site: http://www.axa-equitable.com/
http://www.variableannuityfacts.org/
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