One hundred and thirty-four years ago today, a group of life insurance agents from different parts of the United States gathered at the Parker House in Boston to create the National Association of Life Underwriters. This organization, which grew into the NAIFA we cherish and celebrate today, was formed to promote the success of the life insurance industry and encourage laws prohibiting life insurance agents from engaging in questionable or unethical practices.
Graduates of NAIFA’s Leadership in Life Institute have a deep appreciation for The 7 Habits of Highly Effective People by renowned leadership authority Stephen Covey. They may be familiar with Covey’s quote, “If there’s one thing that’s certain in business, it’s uncertainty.” The same principle applies to life.
Transitions often amplify uncertainty, and among the most uncertain times for many is the transition into retirement. It has been widely reported that 2024 is the year of “peak 65” in the United States, as an average of 11,000 people reach the traditional retirement age of 65 each day. With more than half of peak 65ers owning investable assets of less than $100,000, according to the 2024 Protected Retirement Income and Planning (PRIP) by the Alliance for Lifetime Income (ALI), the unlikelihood of enjoying lasting financial wellbeing is a real concern for many. The 2024 Insurance Barometer Study by LIMRA and Life Happens, NAIFA’s consumer-education arm, confirms this conclusion, revealing that “having enough money for a comfortable retirement” is U.S. consumers’ leading financial concern, ranking even above worries about paying monthly bills and reducing debt.
Life Happens, NAIFA’s consumer-education arm, has collaborated for the 14th year with LIMRA to conduct the 2024 Insurance Barometer Study. The findings reveal a great opportunity for financial professionals to educate Americans about the importance of life insurance and dispel some of the myths and misunderstandings that contribute to a life insurance need-gap in the United States. As we wrap up April, National Financial Literacy Month, it’s a great time to remember that an important part of being a financial professional involves improving the financial literacy of clients and consumers.
