Americans Cutting Back on Expenses, But Consider Life Insurance a Must

Americans Cutting Back on Expenses, But Consider Life Insurance a Must

NEWARK, N.J.--(BUSINESS WIRE)-- Americans are looking for ways to spend less, but when it comes to life insurance they're holding on to their policies, according to a recent report entitled, The Value of Life in Tough Economic Times issued by Prudential Financial, Inc. (NYSE: PRU)

The study found that 93% of consumers consider life insurance a must. Despite the fact that 70% have cut back on routine expenditures, 84% indicate they view the cost of life insurance as relatively minimal when compared to other items in the household budget.

Life insurance provides peace of mind, which is a valuable asset given today's economic environment, said Jim Avery, president of Prudential's Individual Life Insurance business.

The study also revealed that 95% recognize that life insurance could be significantly more expensive to obtain at an older age and 55% are concerned it could be harder to get coverage due to health conditions. Ask yourself the question: ˜Is my health the same as it was 15, 10 or even 5 years ago?' The answer is very likely to be no, which underscores the reasons for purchasing life insurance earlier rather than later, noted Avery.

Prudential's The Value of Life in Tough Economic Times was conducted in conjunction with the company's sponsorship of Life Insurance Awareness Month (LIAM.) Held each September, LIAM is an industry-wide effort coordinated by the nonprofit Life and Health Insurance Foundation for Education in response to growing concern about the large number of Americans who lack adequate life insurance protection.

This year's spokesperson for Life Insurance Awareness Month is Chris Noth, Sex in the City and Law and Order star. What people may not know is the impact that life insurance had on his life after the sudden death of his father when Chris was 9 years old. A videotaped message of his story can be found on Prudential's website throughout the month of September.

Prudential's The Value of Life in Tough Economic Times is part of a survey entitled Taking a Pulse of American's Changing Life Insurance Needs that was conducted online between June 24 and July 1, 2009. The data was collected for Prudential by MRops, a Pennsylvania based, independent, market research firm.

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $580 billion of assets under management as of June 30, 2009, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping approximately 50 million individual and institutional customers grow and protect their wealth. The company's well-known Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information call MJF Insurance Agency, Inc. at 866-983-8726. Licensed in NY,NJ,CT,PA and Florida.

2nd Quarter Fixed Annuity Sales Rise

Fixed annuities Second-quarter fixed-annuity sales rose 10% to $27.8 billion, Beacon Research reports

Book-value fixed annuities led the pack with $14 billion, the firm says

Source:By Darla Mercado

August 31, 2009, 12:50 PM EST


Overall sales of fixed annuities hit $27.8 billion during the second quarter, up 10% from a year earlier but down 20% from the first quarter this year, according to data from Beacon Research Publications Inc.

Book-value fixed annuities, which pay a declared rate of interest over a period of time, dominated total sales during the second quarter with an estimated $14 billion in sales, according to the Evanston, Ill., research firm. That was up from $12 billion in the second quarter of 2008.

Index annuity sales hit $8.2 billion, up from $6.9 billion a year earlier.

Market-value-adjusted fixed annuities, which adjust the value of surrenders or withdrawals according to interest rate fluctuations, fell to $3.5 billion, down slightly from $3.6 billion a year earlier. Finally, fixed-income annuities brought in $2.2 billion in sales, up 10% from a year earlier.
New York Life Insurance Co. led its peers as the company with the most in total fixed-annuity sales, jumping from second place in the first quarter. The carrier sold $2.85 billion in fixed annuities.

Aviva USA Corp. of Des Moines, Iowa, climbed to second place, from third, with $1.67 billion in fixed-annuity sales, while Minneapolis-based Allianz Life Insurance Company of North America rounded out the top three with $1.55 billion in total fixed-annuity sales.

The first quarter’s sales leader MetLife Inc. of New York dropped to seventh place with just $950 million in fixed-annuity sales during the second quarter.

New York Life also had the top-selling product, with its NYL Preferred Fixed Annuity, a book-value product. Allianz Life came in second with its index annuity, the MasterDex X, while New York Life was third with the NYL Fixed Annuity, another book-value product.

If you would like more information on fixed annuities call us at M.J.F. Insurance 866-983-8726. M.J.F. is an independent agency and will help you find the best rates for your money with A rated carriers.