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Covid-19 has forced Americans to take stock of their lives and led many to consider their own mortality. That includes making out wills and buying life insurance.
A new Forbes Advisor survey found that many Americans have responded to the pandemic by making sure their loved ones are financially cared for if they pass away. In the survey, 64% of those with wills said they made out a will because of Covid-19. Young adults in particular used the pandemic as a catalyst to look ahead to a time when they’re no longer here.
More Wills Written Because of Covid-19
Among people who have wills, more than 70% between ages 18 to 41 said they created a will as a direct result of Covid-19.
Did you make your will as a result of Covid-19?
Despite the Covid-19 pandemic spurring more Americans to make out a will, many people still don’t have a plan in effect. Slightly less than half of the people surveyed said they have a will. It’s especially an issue among women, with only 39% saying they have a will.
Do you have a will?
Younger Americans are actually more likely to say they have a will than middle-aged people and even seniors.
Among those who don’t have a will, the most common reason for not having one is that they don’t have enough money or assets to leave behind. Other reasons for not having a will include not knowing where to start, not having the time and thinking that making out a will is too expensive.
Which of the following are the reasons you have not made a will?
What would inspire someone without a will to write one? Our survey found that children are the top reason.
Which of the following life events would be the most likely to inspire you to make a will?
Reasons to write a will shift in line with life stages: Younger adults thing getting married as the top reason to write a will. Then in their late 20s through mid-50s people chose children as the primary reason.
Related: How To Write A Will Without A Lawyer
Covid-19 More Likely to Influence Men, Young Adults to Get Life Insurance
Covid-19 has nudged many people to buy life insurance or expand existing coverage. That’s especially true for men.
Have you considered taking out life insurance or taking out additional life insurance due to Covid-19?
Younger adults were also more likely to say Covid-19 influenced them to buy life insurance or get additional coverage.
Women are less likely to have life insurance than men, with double the percentage of women saying they don’t have any life insurance.
Related: Best Life Insurance Companies 2022
Ways to Own Life Insurance
Our survey found that one-third of men only have life insurance through work, which likely makes them underinsured. A substantial number of women (19%) also rely solely on workplace life.
Supplemental life insurance through an employer is a nice perk that usually costs little to no money for the employee. Nevertheless, workplace life insurance typically has small death benefit amounts. And once the person leaves the employer, they typically also lose that life insurance coverage.
Do you have life insurance?
Many older adults don’t have life insurance coverage, which likely reflects their life stage. As people enter retirement or no longer have dependents, the need for life insurance often decreases. Among those ages 58 and older, 64% don’t have life insurance, compared to just 9% of people between ages 18 to 25.
Related: Best Senior Life Insurance Companies
The good news for people looking for life insurance is that policies cost less than they may think. Term life insurance is usually the most affordable type of life insurance. Term life policies offer a period of steady rates that won’t change, such as 10, 20 or 30 years, and can be a vital piece of a financial plan if you have a mortgage or children.
Our research found that the average term life insurance rates for a 20-year, $1 million policy could cost a 30-year-old woman just $29 a month. That’s one reason why it’s vital to get a policy when you’re young and healthy. Rates for life insurance buyers—even very healthy ones—go up with every birthday. For instance, a 50-year-old woman would pay $105 on average monthly for a 20-year, $1 million term life policy.
Check out Forbes Advisor’s Life Insurance Calculator to help figure out how much coverage you need. The calculator asks a handful of questions and provides an instant life insurance need estimate.
This online survey of 2,000 US adults was commissioned by Forbes Advisor and conducted by market research company OnePoll, in accordance with the Market Research Society’s code of conduct. Data was collected between Feb. 4 and Feb. 7, 2022. The margin of error is +/- 2.2 points with 95% confidence. This survey was overseen by the OnePoll research team, which is a member of the MRS and has corporate membership with the American Association for Public Opinion Research (AAPOR). For a complete survey methodology, including geographic and demographic sample sizes, contact firstname.lastname@example.org.
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