AXA EQUITABLE PROTECTION REPORT Life Insurance needs and realities Results for USA with internationa

1
AXA EQUITABLE PROTECTION REPORTLife Insurance
needs and realitiesResults for USA (with
international comparison)
2
Table of content

• Introduction to the AXA Equitable Protection
  Report
• Methodology
• Analysis
• Life stage explanation
• Part 1 Sample description
• Part 2.A Attitudes towards Life risks
• Part 2.B Behaviors and habits against Life risks
• Part 3 Product ownership and habits
• Part 4 Theoretical insurance gap
• Part 5 Conclusions
• Appendices

3
Introduction to the AXA Equitable Protection
Report An international survey of Life Insurance
needs and realities

• Life Insurance habits vary in function of
  population segments and countries.
• Which are attitudes towards life risks?
• What are the usages and habits?
• How properly are people insured against what they
  call life risks?
• How are particular segments not insured?
• The AXA Equitable Protection Report analyses
  these phenomena and tries to bring insights into
  a subject which might be of crucial importance
  for large parts of population

4
Methodology

• People aged 25-65, working and not working
  (students being excluded)For Non-working,
  additional question to know if there is at least
  one income earner in the household (QI Do you
  have an income in your household). If not the
  respondent was excluded.
• Sample is national representative in terms of
  gender, age, occupation status and region.
• Next to the USA, 10 countries were involved
  Australia, Belgium, France, Germany, Hong-Kong,
  Italy, Japan, Spain, Switzerland, and the UK.
  Interviews are comparable.
• Fieldwork Computer Assisted Telephone Interviews
  (CATI) methodology.
• Fieldwork dates from the 28th March to the 24th
  of May 2007.
• In this survey we introduced the notion of life
  risks, under which we mean serious illness,
  disability, death, long-term unemployment,
  serious car accidents, etc
• By Life insurance we mean an insurance that pays
  a lump sum or periodic payments as from an agreed
  age and/or a lump sum or periodic payments to
  specified beneficiaries when you die term-life
  insurance.

5
Analysis

• Brackets evaluation all amount or percentage
  will be presented on a range of brackets in
  order to determine the values of the bracket we
  apply the following rules
• for the smallest bracket we took 0.75 of the
  bracket value (e.g. Less than 25,000 bracket
  was evaluated at 18,750)
• for the highest bracket we took 1.5 of the
  bracket value (e.g. More than 1,000,000 was
  evaluated at 1,500,000)
• for all other brackets we took the average (e.g.
  From 25,000 to 50,000 was evaluated at 37,500)
• Minimum bases
• base between 30 and 59 will have to be analysed
  with caution, we will present it as follows (n
  35).
• base under 29 will not be analysed because of too
  low base, and we will present it as follows (n
  25).
• Significances are calculated with a 10 risk
  level.

6
The AXA Equitable Life Protection Report
distinguishes 4 Life stage categories Single,
Pre-nester, Nester and Post-nester

• Single Households composed of 1 person (i.e.
  single, widowed or divorced) 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 (1 or more
  people) with at least one child financially
  dependent.
• having 2.2 children in average
• Post-nester all types of households (1 or more
  people) with no more financially dependent
  children or household composed of 1 person (i.e.
  single, widowed or divorced) with no children and
  aged more than 40 years old

7
8
54
31
7

• Part 1 Sample description national
  representation of population aged 25-65

8
Gender and Age
Gender
Age
Base n 360
Average 44.1 y.o. 44.2 y.o. Base n172 n188
QA Are you.? QB We are looking to research
people within a specific age range, so could you
please give me your age?
9
Working status and regional split
Working status
Regional Distribution
QH What is your current work situation? QJ
Where do you live?
10

• Part 2 Attitudes Behaviors
• 2.A Attitudes towards Life risks

11
What do you care about ?For U.S. adults 25 to
65 years old, their health is the most important
of the things asked about, but their own
financial situation is also very important
especially being prepared for their retirement,
saving money and home ownership.
Mean
9.3
8.4
8.1
8.1
7.5
5.1
8.7
8.6
Top 2 marks 10 9 Mid 3 marks 8 7
6 Bot 5marks 1-gt5
Base n 360 Specific item for France
Q1 I am now going to read you some statements.
Using a scale from 1 to 10 where 10 means that
this statement is very important to you and 1
means that this statement is not at all
important to you. Please use the scores
in-between in order to grade your opinion. Could
you please tell me how important you consider?
12
What do you care about ?Among those who have
financially dependent children (Nesters), a very
high level of importance is placed on ensuring
their childrens future nearly as important as
their own health.
While those who do not feel they are well insured
differ little from others in the importance
placed on most of the aspects of their lives,
they place much more importance on ensuring their
childrens future than do others.
Significantly superior to Total
Significantly inferior to Total
Q1 I am now going to read you some statements.
Using a scale from 1 to 10 where 10 means that
this statement is very important to you and 1
means that this statement is not at all
important to you. Please use the scores
in-between in order to grade your opinion. Could
you please tell me how important you consider?
13
What do you care about ?

• Overall, their own health is most important to
  all, although other aspects of their lives are
  also important and differ by life stage.
• Those with financially dependent children place a
  high level of importance on ensuring their
  childrens future.
• Home ownership and saving money also rank high on
  most peoples priority lists.
• In contrast, self-indulgence has much lower
  importance across all life-stages.

14
What do you care about ? For people in the
U.S., ensuring their childrens future ranks
lower in importance, of the eight issues asked
about, than in many countries. In Belgium,
France, Italy, Spain, and Switzerland, this ranks
second only to their own health, while in the
U.S., it ranks fifth (similar to Hong Kong,
Japan, and Australia).
Significantly superior to Total
Significantly inferior to Total
Q1 I am now going to read you some statements.
Using a scale from 1 to 10 where 10 means that
this statement is very important to you and 1
means that this statement is not at all
important to you. Please use the scores
in-between in order to grade your opinion. Could
you please tell me how important you consider?
15
Which life accidents might happen to
them?Serious illness is seen as the most likely
of the negative events asked about, followed by
car accidents, with Americans rating their
likelihood 5.3 and 4.9 on a 10-point scale.
Serious financial problems are judged the third
most likely (4.1), nearly identical to the
likelihood of natural disasters (4.0), crime
(3.8) and unemployment (3.8).
Mean
5.3
4.1
4.9
4.0
3.8
3.8
3.4
3.3
3.4
2.2
Top 2 marks 10 9 Mid 3 marks 8 7
6 Bot 5marks 1-gt5
Base n 360
Q58 Here is a list of risks that could happen to
you in life. For each of these, please tell me
to what extent you think these risks might happen
to you personally, using a scale from 1 to 10
where 10 means that it certainly will happen to
you and 1 means that it will certainly not
happen to you at all. Please use the scores
in-between to grade your opinion.
16
Which life accidents might happen to them?Those
who feel they are not well insured believe that
serious financial problems and unemployment could
happen to them - higher than do those who feel
better insured.
Significantly superior to Total
Significantly inferior to Total
Q58 Here is a list of risks that could happen to
you in life. For each of these, please tell me
to what extent you think these risks might happen
to you personally, using a scale from 1 to 10
where 10 means that it certainly will happen to
you and 1 means that it will certainly not
happen to you at all. Please use the scores
in-between to grade your opinion.
17
Which life accidents might happen to them?

• Health, which ranks first in importance, is a
  source of worry for people. Serious illness
  ranks first in terms of likelihood of the
  negative events asked about in the survey,
  followed by serious car accidents. Financial
  problems, natural disasters, crime and
  unemployment rank next in the likelihood people
  attach to these events.
• Feelings about the adequacy of their insurance
  coverage are related to Americans beliefs about
  the likelihood of serious financial problems and
  unemployment. The less well insured they feel
  they are, the more likely they believe that one
  of these two things will happen to them.

18
Which life accidents might happen to them ? /In
all 11 countries studied, serious illness or car
accidents ranked first or second in peoples
ratings of the likelihood of these events
happening to them. At or near the bottom of the
list, for all countries, were plane accidents and
terrorism.
Serious financial problems, which ranked third in
likeliness ratings in the U.S., with a rating of
4.1, was rated as likely or more so by people in
all counties other than Australia (3.6) and
Spain (3.9).
Significantly superior to Total
Significantly inferior to Total
Q58 Here is a list of risks that could happen to
you in life. For each of these, please tell me
to what extent you think these risks might happen
to you personally, using a scale from 1 to 10
where 10 means that it certainly will happen to
you and 1 means that it will certainly not
happen to you at all. Please use the scores
in-between to grade your opinion.
19
Overall feeling of coverage against Life
risksMore than eight in ten feel they are at
least somewhat well insured against the
consequences of lifes risks, although only 43
feel they are very well insured.
They are feeling.
Base n 360
against Life risks
Too low bases to display results
Significantly inferior to Total
Significantly superior to Total
At the start of the questionnaire Q4 Today, how
well do you feel that you are insured against the
consequences of life risks? Do you feel that you
are ?
20
Attitude towards life risksOne in four Americans
are risk adverse, highly aware of life accidents
and hating to take risks. Another one in eight
say they believe in taking risks. A majority,
though, dont think about risks or their
consequences. Those who feel not well insured
are less aware of life accidents than those who
feel they are very well insured.
Base n 360
Too low bases to display results
Significantly inferior to Total
Significantly superior to Total
Q43 I am going to read you five attitudes
towards risks. Which one describes the best your
attitude towards risks?
21
Feeling about protection insuranceTwo in three
Americans say life insurance products protect
their families and nearly as many say insurance
gives them peace of mind. Smaller majorities say
insurance products are a necessary evil and that
they protect their financial assets. Few (11)
believe they are useless or a waste of money.
Average number of mention 2.5
Base n 360
Too low bases to display results
Significantly inferior to Total
Significantly superior to Total
Q3 Now, if we speak about insurance products
designed to protect against life risks, such
as serious illness, disability, death, serious
car accidents, etc.... Would you say that such
insurance products
22
Attitude towards life risks / Feelings about
protection insurance Attitudes towards life
risks Americans are less averse to risks than
people in most countries, and are more likely
than others to say they believe in taking risks.
Feelings about protection insurance Americans
are more likely than those in most other
countries to feel that insurance products are a
necessary evil, but they are also somewhat less
likely than average to consider them a waste of
money.
Significantly superior to Total
Significantly inferior to Total
Q43 I am going to read you five attitudes
towards risks. Which one describes the best your
attitude towards risks?
Q3 Now, if we speak about insurance products
designed to protect against life risks, such
as serious illness, disability, death, serious
car accidents, etc.... Would you say that such
insurance products
23

• Part 2 Attitudes Behaviors
• 2.B Behaviors and habits against Life risks

24
Having regular check-up / Behaviors for staying
healthyAmericans 25 to 65 years old are very
likely to have had a checkup in the past 5 years
and to have other ways of staying healthy.
Exercise, refraining from smoking and balanced
diets are their most common ways.
Regular check-up
Behaviors for staying healthy
Base n 360
Base n 360
Q41 During the last five years, have you had a
medical check-up? Q42 I would now like to know
what you do to stay healthy. Among the ways of
staying healthy that I am going to read out,
which are the two that you use the most often?
25
Having regular check-up / Behaviors for staying
healthyThose who feel very well insured are more
likely than others to have had a checkup in the
past 5 years. Nester females are more likely to
maintain a balanced diet to stay healthy. Those
who feel they are not well insured are more
likely than others to say they do nothing in
particular to stay healthy.
Significantly superior to Total
Significantly inferior to Total
Q41 During the last five years, have you had a
medical check-up? Q42 I would now like to know
what you do to stay healthy. Among the ways of
staying healthy that I am going to read out,
which are the two that you use the most often?
26
Having regular check-up / Behaviors for staying
healthy Americans are more likely than those in
other countries to have medical checkups
regularly and to have had one in the past 5
years. They are also less likely than average to
say they do nothing in particular to stay
healthy. Americans are similar to people in other
countries in their most commonly practiced
methods of staying healthy Exercise, balanced
diets and refraining from smoking (except in
Japan) are the three most common ways of staying
healthy, among the ways asked about, for people
in all the countries studied.
Significantly superior to Total
Significantly inferior to Total
Q41 During the last five years, have you had a
medical check-up? Q42 I would now like to know
what you do to stay healthy. Among the ways of
staying healthy that I am going to read out,
which are the two that you use the most often?
27
Thinking about life risksThree out of four think
about the consequences of life risks at least
occasionally and one out of four think about
these frequently. Death and financial hardship
are life risks that large majorities say they
have though about.
THEIR CONSEQUENCES FOR
Thinking about Life risks
Base n 343
Base n 360
AND ABOUT
Only asked to divroced or personv being part
of a blended family
Base n 343
Q5 Generally speaking, how much have you thought
about the consequences of life risks? By life
risks we mean serious illness, disability,
death, long-term unemployment, serious car
accidents, etc.... Q6 When you think about the
consequences of life risks, do you think about
their impact on ? Q8 Which of the following
consequences of life risks have you already
thought about? Have you thought about
28
Thinking about life risksThose who feel they are
not well insured are more likely than others to
think about life risks frequently.
Only asked to divroced or personv being part
of a blended family
Significantly superior to Total
Significantly inferior to Total
Not asked
Too low bases to display results
Q5 Generally speaking, how much have you thought
about the consequences of life risks? By life
risks we mean serious illness, disability,
death, long-term unemployment, serious car
accidents, etc.... Q6 When you think about the
consequences of life risks, do you think about
their impact on ? Q8 Which of the following
consequences of life risks have you already
thought about? Have you thought about
29
Thinking About Life Risks

• Americans do think about the consequences of life
  risks and, for those with families, especially
  the consequences on their families.
• Death and financial hardship are the life risks
  the largest numbers of people have already
  thought about and large majorities have thought
  about permanent and temporary disabilities as
  well.
• Nearly all of those with spouses or partners say
  it is the impact on their spouse/partner they
  think about. Nearly all of those with children
  say it is the impact on their children they think
  about.
• The insurance that might give people peace of
  mind, may be most lacking for those who think
  most about these risks. Those who feel they are
  not well insured are more likely than others to
  think about life risks frequently.

30
Thinking about life risks Americans are more
likely than those in other countries to have
thought about their deaths, financial hardships
and disabilities. They also think about life
risks more frequently than people in other
countries.
Only asked to divroced or personv being part
of a blended family
Too low bases to display results
Significantly inferior to Total
Significantly superior to Total
Q5 Generally speaking, how much have you thought
about the consequences of life risks? By life
risks we mean serious illness, disability,
death, long-term unemployment, serious car
accidents, etc.... Q6 When you think about the
consequences of life risks, do you think about
their impact on ? Q8 Which of the following
consequences of life risks have you already
thought about? Have you thought about
31
With whom do they talk about life risks..?People
are more likely to have spoken to family members
than to others about the consequences of life
risks. Six in ten have spoken about them with
their spouse or partner (87 of those who have a
spouse or partner) and nearly two thirds have
spoken about them with their families. Even
among those who have a spouse or partner, though,
only a little more than half have talked about
these risks in detail. Fewer than half have
talked about them to a financial professional.
The insurance agent / broker is the professional
who is cited mostly.
Talking about life risks with
How do they talk of it with their partner /
spouse ?

With loved ones84 (for those not living in
couple) 90 (for those living in couple)
Base n 248
With professional 63
Base n 360
Only asked to people living in couple
Q9 Have you talked about the consequences of
life risks with your partner? Q10 Have you
talked about the consequences of life risks with
?
32
With whom do they talk about life risks..?Those
who feel very well insured are much more likely
to have spoken with others (both with loved ones
and professionals) about the consequences of life
risks than are those who do not feel well insured.
Not asked
Significantly superior to Total
Significantly inferior to Total
Only asked to people living in couple
Q9 Have you talked about the consequences of
life risks with your partner? Q10 Have you
talked about the consequences of life risks with
?
33
With whom do they talk about life risks..?
Compared with people in other countries on
average, Americans are more likely to talk with
both family and professionals about the
consequences of life risks.
Significantly superior to Total
Significantly inferior to Total
Only asked to people living in couple
Q9 Have you talked about the consequences of
life risks with your partner? Q10 Have you
talked about the consequences of life risks with
?
34

• Part 3 Product ownership habits

35
Protection insurance ownership (provided by the
employer and/or personally purchased)About eight
in ten say they have term-life insurance and an
equal number have health insurance. Disability
insurance is less common (about half) and only
about one fourth have long-term care insurance.
Base n 360
Q11 I am now going to read you a list of
insurance products. Please tell me the ones your
employer has taken out for you? Q14 Apart from
the ones maybe provided by your company, have you
personally taken out any of the following
insurance products? Have you PERSONALLY taken
out Q15I am now going to read you a list of
insurance products. Please tell me the ones you
have taken out personally? Have you PERSONALLY
taken out
36
Protection insurance ownership (provided by the
employer and/or personally purchased)Ownership
of all types of insurance is lower among those
who feel they are not well insured than among
others Fewer than half of this group has
term-life insurance, only six in ten have health
insurance, and even fewer have disability or
long-term care insurance.
Too low bases to display results
Significantly inferior to Total
Significantly superior to Total
Q11 I am now going to read you a list of
insurance products. Please tell me the ones your
employer has taken out for you? Q14 Apart from
the ones maybe provided by your company, have you
personally taken out any of the following
insurance products? Have you PERSONALLY taken
out Q15I am now going to read you a list of
insurance products. Please tell me the ones you
have taken out personally? Have you PERSONALLY
taken out
37
Personal protection insurance ownershipTwo
thirds have purchased life insurance themselves,
whether their employer provides any or not, and
44 have purchased health insurance. Far fewer
have purchased any of the other insurance
products asked about. Those who feel very well
insured are more likely than others to have
purchased life insurance for themselves.
Too low bases to display results
Significantly inferior to Total
Significantly superior to Total
Q11 I am now going to read you a list of
insurance products. Please tell me the ones your
employer has taken out for you? Q14 Apart from
the ones maybe provided by your company, have you
personally taken out any of the following
insurance products? Have you PERSONALLY taken
out Q15I am now going to read you a list of
insurance products. Please tell me the ones you
have taken out personally? Have you PERSONALLY
taken out
38
Protection insurance ownership (the more equipped
whatever the products) Americans are more likely
to be covered by employer-provided insurance
(health, life, and disabilty) than are people in
the countries in the survey on average.
Not asked
Significantly superior to Total
Significantly inferior to Total
39
Protection insurance ownership (the least
equipped whatever the products) Compared with
other countries, the U.S. on average, is not
lower in their ownership of any of the insurance
prodcuts. Since they are more likely to receive
at least some insurance from their employers,
they are less likely to have only insurance
products they purchased themselves.
Not asked
Significantly superior to Total
Significantly inferior to Total
40
Reasons for subscribing to life insurance and
triggersAmong those who have individually-purchas
ed life insurance, the most common reason is to
protect their families or themselves (75). The
birth of a child and marriage are the events that
most frequently prompted them to buy life
insurance.
The 2 main reasons
The first trigger
Base n 239
Base n 239
Q18 You told me that you have personally taken
out a life insurance what were the main reasons
for taking this out? Q19 Do you remember what
led you to take-out your first individual life
insurance? Was it?
41
Reasons for subscribing to life insurance and
triggersWomen are more likely than men to say it
was the birth of a child that led them to
purchase life insurance.
Q18 You told me that you have personally taken
out a life insurance what were the main reasons
for taking this out? Q19 Do you remember what
led you to take-out your first individual life
insurance? Was it?
42
Reasons for subscribing to a life insurance and
triggers Compared with other countries surveyed,
Americans on average, are more likely to say the
reason they bought life insurance was to protect
their families and themselves and less likely to
say the main reason was a mortgage. Their
purchase was also more likely to have been
triggerd by the birth of a child or a marriage.
Significantly superior to Total
Significantly inferior to Total
Q18 You told me that you have personally taken
out a life insurance what were the main reasons
for taking this out? Q19 Do you remember what
led you to take-out your first individual life
insurance? Was it?
43
Overview of Life insurance ownership
44
Reasons for not purchasing life insuranceAmong
those who have not purchased individual life
insurance on their own, the most common reason
for not purchasing it was having life insurance
provided by their employer (26). The second
most common reason was that they felt it was too
expensive (18).
Base n 121
Q16 Why have you not taken out any INDIVIDUAL
LIFE INSURANCE?
45
Reasons for not purchasing life
insurancePost-nesters who no longer have
financially dependent children, are the most
likely to say that reasons for not purchasing
life insurance included having no dependents and
not needing it.
Too low bases to display results
Significantly inferior to Total
Significantly superior to Total
Q16 Why have you not taken out any INDIVIDUAL
LIFE INSURANCE?
46
Reasons for not purchasing life insurance People
in the U.S. who have not purchased individual
life insurance are more likely than those in
other countries to say they did not purchase it
because their employer provides life insurance.
They are less likely than those in other
countries to say their reasons included that they
did not need it, that they had never thought of
it, or that they do not feel concerned about it
yet.
Significantly superior to Total
Significantly inferior to Total
Q16 Why have you not taken out any INDIVIDUAL
LIFE INSURANCE?
47
Reasons for purchasing disability insuranceThe
most common reasons for Americans purchasing
disability insurance are to protect their
families or themselves and to have peace of mind.
TEMPORARY disability insurance
PERMANENT disability insurance
Base n 40
Base n 37
Q18a You told me that you have personally taken
out a TEMPORARY disability insurance what were
the main reasons for taking this out? Q18b You
told me that you have personally taken out a
PERMANENT disability insurance what were the
main reasons for taking this out?
48
Reasons for not purchasing individual disability
insuranceFor those who have not purchased
individual disabilty insurance, the most common
reason is that they had this insurance through
their employers. Other reasons included it being
too expensive or that they had never thought
about it.
Base n 183
Q17 Why have you not taken out any disability
insurance?
49
Reasons for not purchasing individual disability
insuranceFor those who feel very well insured
but have not purchased individual disability
insurance, the most common reason is that their
employer provides this insurance.
Too low bases to display results
Significantly inferior to Total
Significantly superior to Total
Q17 Why have you not taken out any disability
insurance?
50

• Part 4 Theoretical Insurance Gap

In order to allow for international comparison, a
common Gap formula was designed to be applicable
for all respondents
51
Determining the amount of household death
coverage needed "Pure Need "
Amount of Coverage Needed

Capital Needs
Income Needs

Income Multiple
Uninsured
Current Annual Gross
Household Debt
(depending on
x


Household Income
personal situation)
(Mortgage, Student
Loans, Consumer
Loans, Other)
Age
Age
Married or
Married or
Single, No
With Dependants (regardless of
Single, No
With Dependants (regardless of
(if married or
(if married or
Partnered, No
Partnered, No
dependants
marital status)
Dependants
marital status)
partnered, use age
partnered, use age
Dependants
Dependants
of younger spouse)
of younger spouse)
Number of dependant for each dependant child
1 for each dependant adults (except
spouse/partner) 1
1
6 2 Number of dependants
6
Under 40
1
6 2 Number of Dependants
6
Under 40
1
5 2 Number of dependants
5
41
-
50
1
5 2 Number of Dependants
5
41
-
50
1
4 2 Number of dependants
4
51
-
60
1
4 2 Number of Dependants
4
51
-
60
1
3 2 Number of dependants
3
61
1
3 2 Number of Dependants
3
61
52
Determining the amount of the gap in death
coverage
Gap In Household Coverage
Existing Household Life Insurance
Amount of Household Coverage

Needed (

Pure Need

)
-

Other Household Liquid Assets
as per previous slide
(obtained from survey responses)
53
Based on input from Survey respondents
Personal Situation
Uninsured Household
Current Annual Gross

Age
(of both spouses)
Debt
Bracket
Household Income

Single or
Bracket
(Includes Mortgage,
Married
/Partnered
Student Loans, Consumer

Nu
mber
of Dependants
Loans, Other)
Other Household Liquid
Existing Household Life
Assets Available
Insurance Coverage
(Bracket)
(Bracket)
54
Explanation of Insurance Gap
The insurance is calculated as follows
(
)
AMOUNT OF UNINSURED HOUSEHOLD DEBT / LOAN
CURRENT ANNUAL GROSS INCOME (HOUSEHOLD)
NUMBER OF DEPENDANTMULTIPLIER
COVERAGE NEED

X

LIFE INSURANCE, EXISTING COVERAGE
(
)
COVERAGE NEED

LIQUID ASSETS

INSURANCE GAP
-
Which implies that A positive insurance gap
means that the respondent is under equipped in
terms of protection products and or in terms of
available assets and it is under insuring his or
her need. A negative or zero value means that
there is no insurance gap the respondent has
chosen for more than the minimum coverage (as it
is always possible in life coverage) or has
enough liquid assets, or both.
55
Calculated Insurance GapThe gap could be
calculated for 213 people surveyed, or 59 of
interviewees
56
Calculated Insurance Gap by Life StageSeven in
ten are under-insured. Post-nesters are the
least under-insured with more than half of this
group (53) having on average no insurance gap.
Average Gap
179,762 US
-11,788 US
223,182 US
370,958 US
366,473 US
374,836 US
-60,985 US
57
Calculated Insurance Gap by Life Stage
58
Composition of Insurance Gap GroupsThe group
with no insurance gap is comprised primarily of
post-nesters who no longer have dependent
children. The group with the widest gap is
comprised primarily of nesters, who do have
financially dependent children.
Average Gap
-271,928 US
81,632 US
299,647 US
754,740 US
59
Calculated insurance gap vs feeling of being well
insured or notPeople who feel they are not well
insured have the largest insurance gap, averaging
a gap of 214,000
Average Gap
179,762 US
164,801 US
181,812 US
214,416 US
60
Calculated insurance gap vs feeling of being well
insured or not But a lot of people feeling very
well insured have an important insurance gap.
Average Gap
-271,928 US
81,632 US
299,647 US
754,740 US
61
The Calculated Insurance GapThree countries with
quite a large proportion of people showing a gap
Belgium, Hong Kong and Switzerland
62
Overall analysis for the Gap

• On average, Americans 25 to 65 years of age have
  an insurance gap of 179,762, though the size of
  that gap varies across life stages.
• Nesters, who have dependent children, have on
  average the highest gap (370,958) while
  post-nesters have none on average.

63

• Part 5 Conclusions

64
Key Findings in America

• There is a serious lack of knowledge regarding
  financial coverage needs in case of death.
• There is still an high level of underinsurance on
  individuals most precious assets life. Close to
  70 percent of Americans have an insurance gap
  (which compares favorably to the survey average
  of 76 percent), and it averages an amount of
  180,000 or 127.000 which is somewhat lower
  than the survey average of 150,000
• The level of underinsurance is particularly high
  among the most needing segment, i.e. the nesters
  with an average gap of 371,000.
• A dissonance was observed between feeling and
  being actually very well covered, as still 64
  percent of those claiming to feel very well
  insured do have an insurance gap.

65
Appendices

• Statistical differences rules
• Details about Gap profiles
• Details about Gap calculation elements

66
Analysis of information

• Brackets evaluation all amounts or percentages
  will be presented in a range of brackets in
  order to determine the values of the brackets we
  apply the following rules
• for the smallest bracket we took 0.75 of the
  bracket value (e.g. Less than 25,000 bracket
  was evaluated at 18,750)
• for the highest bracket we took 1.5 of the
  bracket value (e.g. More than 1,000,000 was
  evaluated at 1,500,000)
• for all other brackets we took the average (e.g.
  From 25,000 to 50,000 was evaluated at 37,500)
• Minimum bases
• base between 30 and 59 was analyzed with caution.
  It is presented as follows (n 35).
• base under 29 was not analyzed because it was too
  low. It is presented as follows (n 25).
• Significances are calculated with a 10 percent
  risk level.

67
Appendix Gap descriptionThose with the largest
insurance gap have higher gross income than do
Americans with lower or no gaps.
In terms of Annual Gross Income
In terms of Debts / Loans insured / not insured
Significantly superior to Total
Significantly inferior to Total
68
Appendix Gap descriptionSimilarly, that high
insurance gap group has higher levels of assets.
In terms of Available assets
Significantly superior to Total
Significantly inferior to Total
69
Appendix Gap descriptionThose who have the
highest gap seem to speak the least to
professionals
With whom do they talk of Life risks
Only asked to divroced or personv being part
of a blended family
only asked to people living as a couple
Base too low to display results
Significantly superior to Total
Significantly inferior to Total
Q5 Generally speaking, how much have you thought
about the consequences of life risks? By life
risks we mean serious illness, disability,
death, long-term unemployment, serious car
accidents, etc.... Q6 When you think about the
consequences of life risks, do you think about
their impact on ? Q8 Which of the following
consequences of life risks have you already
thought about? Have you thought about Q10 Have
you talked about the consequences of life risks
with ?
70
Appendix Gap description
Attitudes towards Life risks.
Having made a will / Why not?
Family support in case of life risk experience
Significantly superior to Total
Significantly inferior to Total
Q43 I am going to read you five attitudes
towards risks. Which one describes the best your
attitude towards risks?
Q59 Have you made a will? Q37 If you were to
experience a serious life risk, do you believe
that you would be financially supported by your
family or your relatives?
71
Appendix Gap description
Feeling about protection insurance products?
Significantly superior to Total
Significantly inferior to Total
Q3 Now, if we speak about insurance products
designed to protect against life risks, such
as serious illness, disability, death, serious
car accidents, etc.... Would you say that such
insurance products
72
Appendix Gap description
Product ownership (provided by the employer
and/or personally subscribed)
Individual product ownership
Q11 I am now going to read you a list of
insurance products. Please tell me the ones your
employer has taken out for you? Q14 Apart from
the ones maybe provided by your company, have you
personally taken out any of the following
insurance products? Have you PERSONALLY taken
out Q15I am now going to read you a list of
insurance products. Please tell me the ones you
have taken out personally? Have you PERSONALLY
taken out
73
Appendix Gap description
Reasons for not purchasing life insurance
Too low bases to display results
Q16 Why have you not taken out any INDIVIDUAL
LIFE INSURANCE?
74
Appendix Gap description
The 2 main reasons
The first trigger to purchase an individual life
insurance policy
Q18 You told me that you have personally taken
out a life insurance what were the main reasons
for taking this out? Q19 Do you remember what
led you to take-out your first individual life
insurance? Was it?
75
Appendix Gap description
Criteria of choice for Life insurance
Q25 Did you decide on your life insurance cover
according to?
76
Household status for the Gap formula - Marital
Status
Age difference with the partner
Marital status
Average ag difference 3.7 years
Base n 248
Base n 360
Blended family
Base n 248
QC Are you.? QE Are you part of a blended
family, meaning you or your partner has children
from a previous union QF What is the age of your
partner?
77
Household status for the Gap formula - Dependant
people
At least one child 53
Base n 360
At least one adult 10
Average number of children
0.5
0.6
0.7
Average number of adult dependant 1.1
0.3
Base n 36
0.0
Base n 193
Total
2.2
Q48 How many children financially depend on you?
Q49 How many are Q50 Among the following
people, please indicate those that are
financially dependant on you
78
Financials for the Gap formula - Household Income
Annual gross income
Base n 360
Average household income82,356
Base n 288
Q62 What is the annual gross income of your
household?
79
Financials for the Gap formula Available
Household Assets
Estimation of available assets
Amount of available assets
Base n 360
Average household assets 217,003
Base n 237
Q38 Do you know, even approximately, the total
amount of your household available assets
(stocks, shares, financial investments, life
insurance)? Q39 Can you give me your best
estimate of the amount of your available
assets? Q40 Would you estimate that this amount
is?
80
Financials for the Gap formula - Debts / Loans
Insured loans
Base n 360
Significantly superior to Total
Significantly inferior to Total
Q51 Do you have any loans, for example, property
loans, consumer credit, student loans or any
other loans? Q52 And are all these loans insured
in case of your death or disability? Q53 Do you
know, even if only approximately, the amount that
you still have to pay back for the loans /
credits which are not insured in case of your
death or disability? Q54/55 Would you estimate
that this amount is?
81
Financials for the Gap formula - Debts / Loans
Significantly superior to Total
Significantly inferior to Total
Q51 Do you have any loans, for example, property
loans, consumer credit, student loans or any
other loans? Q52 And are all these loans insured
in case of your death or disability? Q53 Do you
know, even if only approximately, the amount that
you still have to pay back for the loans /
credits which are not insured in case of your
death or disability? Q54/55 Would you estimate
that this amount is?
82
Financials for the Gap formula - Average amount
of loans not insured
Average amount of loans not insured 84,483
Base n 122
Base too low to display results
Significantly inferior to Total
Significantly superior to Total
Q54/55 Would you estimate that this amount is?