There's no denying that family photographs are truly indispensable. They're what people most want left for their loved ones when they pass away .
Yet what's also irrefutable is parents' desire to leave a lasting legacy for their children, ensuring that their kids are in good financial shape, especially is a parent dies prematurely.
Despite this, however, a majority of Americans point to memorabilia as what they most want to leave behind, a newly released survey suggests.
More than half of Americans - 54 percent - in a recent poll said family photographs was foremost in what they intended to leave behind for their offspring if something happened that hastened their death, based on survey data from non-profit organization Life Happens. Only 49 percent indicated that the proceeds from a life insurance policy were their uppermost desire.
Nearly 1 in 3 know they don't have enough life insurance
"70 million Americans don't have enough life insurance."
At 60 percent, most families in the U.S. have a life insurance policy. The problem, however, is that many may not have enough. In fact, some are well aware of this reality, yet haven't updated their policy to account for the insufficiency. In a separate survey conducted by worldwide research organization LIMRA, 30 percent of Americans know they need more coverage to effectively protect their children's financial well-being. That's the equivalent of 70 million people.
While photographs may be irreplaceable and have sentimental value, there's plenty to be said for monetary value when family members rely on parents. Approximately 40 percent of individuals say that they would feel the fiscal fallout from a premature death within six months, according to LIMRA's findings.
Though life insurance is an optional coverage - meaning you aren't required by law to own a policy - there's been a lot of discussion about insurance mandates, especially since the creation of the Affordable Care Act. Health insurance is now a requirement. Those who don't have a plan are fined a percentage of their salary, which increases every year that consumers aren't in compliance.
The same is true for auto insurance, as 49 of the 50 states require motorists to have a policy in place in order to register a car with the Department of Motor Vehicles.
More people think they need car insurance than life insurance
"Less than two-thirds consider life insurance a necessity."
This may explain why so many people consider auto coverage to be a necessity. Close to three-quarters of respondents in LIMRA's survey said they considered car insurance a must-have. This compared to 63 percent who thought the same about life insurance.
A potential explanation for why life insurance isn't given priority status may stem from a misunderstanding that it doesn't provide much of a return. Only 29 percent think buying life insurance provided the most valuable return, on par with putting money into the stock market.
It's the returns that can make Leveraged Planning® Solutions so valuable. If your client is a business owner or high net worth individual, with a reliable cash flow, a Leveraged Planning® Solutions could provide a significant engine for growth in future years. This means that the earlier they start saving, the more they may be able to leave behind as a death benefit for their heirs.
Additionally, Leveraged Planning® Solutions can consolidate the savings process, or serve as a tool that supports more traditional estate planning measures.
To learn about some of the finer details of Leveraged Planning® Solutions, don't hesitate to get in touch with a Global Financial Distributors professional either by phone or email.