Americans Believe Superheroes Need Life Insurance

The Life and Health Insurance Foundation for Education (LIFE) recently held a survey with findings that suggest many Americans harbor misconceptions that prevent them from getting the financial protection their families need. The national survey illustrates the common misconceptions contributing to the crisis of underinsurance. Americans were asked to assess the life insurance needs of five fictional characters. Results showed that superheroes Batman and Spiderman have much greater needs than cartoon parents Fred Flintstone and Marge Simpson.

Insurance expert David F. Woods, CLU, ChFC, president of LIFE, says these findings suggest that many Americans harbor misconceptions that prevent them from getting the financial protection their families need.

“It’s clear that confusion exists about the basic reason people need life insurance,” says Woods. “If your loved ones stand to suffer financially upon your death, you need life insurance. Whether you’re a superhero or a super parent really misses the point because no matter how dangerous your job is, you never know what tomorrow will bring. If someone depends on you, it is imperative to make arrangements now that ensure they will be taken care of if you were no longer there.”

Survey Findings

Conducted by KRC Research between August 11–14, 2005, the survey asked 1,014 Americans above the age of 18 to consider five fictional characters and select the one they believe has the greatest need for life insurance. Here’s how consumers weighed in along with expert assessment by LIFE president David Woods:

• 28 percent chose Spiderman, an unmarried freelance photographer with an elderly aunt he supports.
  David F. Woods’ reaction: “Peter Parker probably needs life insurance to ensure that if his superpowers ever failed him and he died, his aunt could stay in their home and be cared for.”
• 18 percent chose Batman, a wealthy bachelor.
  David F. Woods’ reaction: “Unmarried and quite wealthy, Batman doesn’t have anyone who depends on him financially and therefore probably doesn’t need life insurance.”
• 16 percent chose Fred Flintstone, a married father with a young child.
  David F. Woods’ reaction: “Fred, the primary breadwinner of the Flintstone family, has a pressing need for life insurance to ensure that Wilma and Pebbles could maintain their standard of living if he were no longer able to provide for them.”
• 15 percent chose Harry Potter, a teenager and student.
  David F. Woods’ reaction: “A full-time student with no siblings or parents who might be affected financially by his premature death. Harry Potter doesn’t have a need for life insurance.”
• 11 percent chose Marge Simpson, a stay-at-home mom.
  David F. Woods’ reaction: “Not all family contributions are monetary. Stay-at-home parents like Marge perform many household services that would be expensive to replace and consequently have a significant need for life insurance.”
• None of the above/don’t know: 18 percent.

“Though fictional, the life situations of these characters illustrate just how different real people’s individual life insurance needs can be,” says Woods. “We encourage Americans to think seriously about their need for life insurance and to consult a qualified insurance professional for assistance in obtaining the right amount and type of coverage for their particular financial needs and circumstances.”

• Think about who depends on you. This includes anyone who relies on you financially, including your spouse, children, parents or other loved ones. It is important to periodically re-evaluate your insurance needs whenever circumstances in your life change, such as getting married, having a child, buying a home, or getting a new job or promotion.
• Get a sense of how much life insurance you need. Determine how much money your family will need to cover immediate expenses and how much they will need over the long-term to maintain their standard of living.
• Learn about the different kinds of life insurance. Life insurance policies exist for virtually every need and budget. Evaluate the different types of coverage available, including term and permanent policies, and figure out what kind of life insurance might be right for you.
• Get help. While it’s important to be an educated consumer, life insurance is one product where an expert’s opinion can make all the difference. One way to find a good financial professional is through recommendations from friends and family—and above all choose someone you can trust.