No lump sums for young life insurance customers

A new study has found that many younger consumers would prefer to receive life insurance benefits and a monthly income rather than as a lump-sum payment

Many younger consumers prefer to receive life insurance benefits in monthly payments rather than as a lump sum, according to new data.

The 2016 Life Insurance Barometer study, conducted by Windsor-based LIMRA Strategic Research, found that 40% of consumers under the age of 40 preferred life insurance benefits to be paid as a monthly income, according to a Hartford Business report. About 30%, meanwhile, still favored a lump-sum payment.

According to LIMRA, products offering a monthly income option could appeal strongly to younger and middle-class consumers.

The study also found that 61% of consumers own life insurance to replace lost income, Hartford Business reported. Forty-four percent said they had life insurance to supplement retirement income. Those percentages were even higher among millennial and Gen-X consumers, the study found.

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