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CNBC
01-07-2025
- Business
- CNBC
Half of Americans don't have any life insurance. Here's why that's a mistake
Nearly half of Americans don't have a life insurance policy, according to a new study, with wide disparities based on age, gender, income and race. A report from Western & Southern Financial Group found that just 51% of U.S. adults had any kind of life insurance. Term, whole, universal, indexed/fixed indexed universal, key person No Along with term policies, Western and Southern offers a dividend-paying whole life plan, a survivorship indexed universal life policy and a key person policy that can protect small businesses. Of those who are covered, about a quarter (26%) only have a group life policy from their employer. While inexpensive and easy to get, group policies have low coverage limits, little room for customization and expire when you leave your job. Perhaps not surprisingly, the odds of coverage increase with age: Just 36% of Gen Z had life insurance, according to the report, the lowest of any generation. That's compared to 50% of Millennials, 55% of Gen X and 57% of Baby Boomers. "That number for Gen Z should be a wake-up call," Troy Brodie, senior vice president with Western & Southern Life, told CNBC Select. "Too many Americans still view life insurance as something you don't need until later in life. But that frame of mind leaves millions vulnerable financially." Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent offers a level term life insurance and whole life insurance policies payable for 20 years or until ages 65 or 100. Both include a terminal illness rider at no extra charge. Terms ApplyPacific Life offers term, permanent and no-exam life insurance, with an accelerated death benefit included at no charge. Terms Apply One of the key functions of life insurance is to protect your loved ones if they count on your income for major expenses, like a mortgage or a child's college education. Despite this, many Americans don't think about life insurance until they're older — when the house is paid off, kids are grown and the need for coverage may actually be less critical. The cost of a life insurance policy increases as you get older, too, so waiting to enroll can add thousands of dollars to your premiums. "There is a widening gap between how younger Americans think about financial protection and how it actually works to solve long-term risk," Brodie said. "Life insurance is not just about planning for the end of life — it's about building financial security through all phases of life." The likelihood of having a policy rises with income, researchers found: Only 31% of Americans earning less than $50,000 a year have coverage, compared to 55% of those earning between $50,000 and $150,000. Of Americans making $150,000 or more, nearly three-quarters (71%) have some kind of life insurance. "Lower income earners are more financially vulnerable," said Steve Wood, consumer markets research director for LIMRA, the insurance industry trade association. "Nearly half of households with incomes $50,000 or lower say they would experience financial hardship within a month of losing a primary earner." The gender gap was fairly pronounced, with men 24% more likely to be covered than women. The study also pointed to a racial divide: African-Americans had the highest rates of coverage, 58%, compared to just 52% of whites and 42% of Hispanics. "Covid-19 saw an even greater awareness for the need for life insurance in the Black community, likely due to the racial disparities in health outcomes," said Wood. "Final expense policies were an affordable way to ensure a loved one was buried how the family wanted."But life insurance can provide much more, he added. "The challenge is communicating to all Americans how affordable a more comprehensive life insurance policy can be." While younger Americans may put off life insurance, there are many reasons to get a policy now. If you were to die while your family was still dependent on your income, a life insurance policy can ensure they maintain their standard of living. That includes money for daily expenses, mortgage payments, education and other major expenditures. Permanent life insurance policies, like whole or universal life, build cash value over time that grows tax-deferred. You can tap into that value while you're still alive to pay premiums, borrow against or make cash withdrawals. Some policies earn dividends, a portion of the insurer's profits that is returned to shareholders. Dividends are not guaranteed, but they can increase the value of your policy, reduce premiums or provide cash payments. Northwestern Mutual, one of our top picks for whole life insurance, announced a $8.2 billion dividend dispersal for 2025. That's the industry's largest ever and a result of the company's strong performance and astute financial management. The best way to estimate your costs is to request a quote No Yes Northwestern Mutual offers five term, whole life and universal life policies. Dividends, while not guaranteed, have been paid to eligible policyholders annually since our review of Northwest Mutual Life Insurance. Life insurance can be an effective way to pass on wealth, either to your family or community. Unlike other assets, the death benefit is typically untaxed and goes directly to your beneficiary without getting tied up in the probate process or used to settle the policyholder's outstanding debts first. The average cost of a funeral ranges from $6,280 to $8,300, according to 2023 data from the National Funeral Directors Association. If you add viewings, upkeep and other options, it can easily rise about $10,000. Burial insurance, also known as final expense insurance, is a whole life policy that covers burial, funeral and cremation, as well as outstanding medical and legal bills, estate fees and other end-of-life expenditures. Applicants are typically guaranteed approval and payouts usually range from $10,000 to $30,000 The best way to estimate your costs is to request a quote Yes Transamerica offers term life insurance, as well as whole, indexed universal and final expense policies. Term products offer coverage for those ages 18 to 80 for up to $10 million, with the option to skip the medical exam for policies under $2 million. The Transamerica FE Express Solution, however, pays out up to $50,000 with no medical exam required. Approval can take as little as 10 minutes and the plan's concierge service comes with free estate planning and assistance in filing legal documents and finding a funeral home. According to the study from Western & Southern, men are 24% more likely than women to have life insurance. While there are many permutations, there are five basic types of life insurance: Term life is fairly cheap but expires according to a preset timeline, while group policies are usually bought for employees or other larger groups and have limited benefits. Whole life remains active as long as you keep paying premiums and may earn a cash value, as can a universal life policy, which is tied to the market. Lastly, a final expenses policy may be automatically approved with a death benefit big enough to pay for a funeral and other end-of-life costs. Life insurance costs vary based on your age, gender, health status, and the type of coverage you're considering. A 20-year term life insurance policy for a healthy 30-year-old male with a $250,000 death benefit could cost less than $200 per year. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties and we pride ourselves on our journalistic standards and ethics.
Yahoo
30-06-2025
- Business
- Yahoo
Chicago woman learns her husband is $80K in debt — Dave Ramsey says her ‘marriage will be over' in 6 months
She thought they were saving for a house. Now, Andie from Chicago says she's ready to sell everything she owns and move into an RV after discovering her husband racked up $80,000 in credit card debt. 'I am at my wit's end,' she told Dave Ramsey on a recent episode of The Ramsey Show. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Andie's husband has yet to offer a good explanation for the debt. In fact, he's still eyeing lavish new purchases, like a $4,000 sofa, while suggesting debt consolidation will be an easy fix for their problem. 'I don't know how else I could guide him besides saying it's a bad idea,' she said. She'll need to figure it out quickly. Ramsey explained that the problem goes well beyond money and could be even worse than Andie thinks. "I predict in six months your marriage will be over," Ramsey said. The couple has been together for about eight years, and married for the last year, but Ramsey told Andie 'you're operating like roommates.' 'He's acting like a free agent just running around over here. You can't tell me if I buy a couch, and I'll do whatever I want to do, and I may or may not tell you. And that's destructive, isn't it?' While Andie's problem is severe, financial infidelity is very common in American households. In fact, 28% of married Americans admit to hiding big purchases or debt from their partner, according to a recent survey by Western & Southern Financial Group. Many couples start off on the wrong foot, with over a quarter waiting until after marriage to discuss how much debt they have. Potential signs of financial infidelity include unexplained late payments, unfamiliar statements or receipts hidden away, a hesitation to discuss financial plans or a partner insisting on separate and undisclosed accounts. Forty percent of respondents in the survey said they would end a relationship over financial dishonesty. That could very well be the end result for Andie. 'It's not about the money. You guys need to go to marriage counseling this week, or your marriage is going to end,' Ramsey advised. Ramsey Show cohost John Deloney encouraged Andie to speak from a place of vulnerability rather than judgment. Instead of telling her husband, 'This is a dumb idea,' she should say, 'I'm so scared about our financial future.' That shift may prompt her husband to truly hear her fears instead of tuning her out. Read more: You don't have to be a millionaire to gain access to . In fact, you can get started with as little as $10 — here's how He also advised the couple to conduct a full money audit to determine their total debt and rebuild trust. You won't know how to make a plan 'until you both sit down and pull credit reports and you have real data in front of you,' he explained — adding that she needs independent information because she cannot trust him right now. Experts also suggest several practical steps for couples grappling with financial infidelity: Open dialogue: Schedule a weekly 'money meeting' to review your budget. Joint budgeting: Get a budgeting app and set spending limits for each category. Accountability partners: Have a neutral third party like a financial coach or mutual friend review monthly statements, so both parties remain honest. Professional help: If conversations turn hostile or one partner remains secretive, marriage counselling or financial therapy can offer structured guidance. Rebuild trust: You can establish shared goals such as buying a home, paying off debt or saving for retirement, then track your progress together. While Andie thinks the best solution might be selling everything non-essential and living minimally — even in an RV — to tackle their debt head-on, her husband is reluctant. 'Why is it so difficult to get rid of material stuff?' she asked, her voice breaking from frustration. Andie's husband suggested some of the debt covered expenses the couple incurred while he was off work due to an injury. The hosts, however, suspect a more serious problem such as addiction may be at play. Whatever the truth may be, Ramsey advised Andie to push forward, because eventually the feelings of betrayal will become too great to bear. 'I do know that when people reach a certain point, the switch flips, and you can't get them back,' he said. If you are in a similar situation, understand that financial infidelity doesn't have to signal the end of your relationship. You can make joint decisions and seek professional help to progress together as a team. This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Yahoo
16-05-2025
- Business
- Yahoo
How Many People Are Hiding Significant Purchases or Debt From Their Spouse?
Money is one of the most common sources of tension in relationships because it often triggers negative emotions related to respect, control and self-worth. According to Fidelity Investments' 2024 Couples & Money study, nearly 25% of couples identify money as their greatest relationship challenge. Read Next: Learn More: So it isn't surprising that 28% of Americans admit to hiding significant purchases or debt from their spouse or partner, according to a recent survey by Western & Southern Financial Group. This finding shows just how difficult it still is for many couples to have honest conversations about money. The survey by Western & Southern Financial Group looked at how and when couples talk about finances, especially in the context of long-term commitments like marriage. Not only did 28% say they've hidden big financial decisions from their partners, but the survey also found that 40% of married Americans consider financial dishonesty a dealbreaker in a relationship. Women were more likely than men to say they'd leave a relationship over financial secrets (42% of women versus 36% of men). And though many believe in waiting until a relationship becomes more serious to talk about money, the data suggests that putting off these conversations may cause more harm than good. The survey also found that nearly 1 in 4 people didn't talk about debt until after they were married. This could cause major friction if one partner has significant financial baggage. Be Aware: Hiding financial information, whether it's secret credit card debt or a splurge your partner didn't know about, is a form of 'financial infidelity.' Like emotional or physical infidelity, it often stems from fear, shame or a desire to avoid confrontation. Here are some common reasons people hide purchases or debt: Fear of judgment: Many people worry that their partner will be disappointed or mad at their financial habits and mistakes. Avoiding conflict: Money is one of the most emotionally charged topics in a relationship, and some people would rather keep secrets than spark an argument. Maintaining control: In some relationships, one partner may feel the need to keep part of their financial life private, especially if there's an imbalance in financial power. Shame: Guilt over past spending or financial mistakes can lead someone to hide the truth, even if their partner would be supportive. But as understandable as these motivations may be, secrecy around money can lead to resentment, broken trust and long-term relationship issues. It's never too late to build financial transparency in your relationship. Here's how to get started. If you haven't already, set up a weekly or monthly check-in where you and your partner review spending, upcoming expenses and shared financial goals. Keeping it routine helps remove the emotional weight and turns money conversations into a normal part of your life together. If you've been hiding debt or spending habits, coming clean about everything at once might feel too overwhelming. Instead, you could start by being honest about one recent purchase or a small area of debt. You can then gradually share more once you become comfortable discussing finances with your partner. Making your partner feel ashamed of their financial past will only make them less willing to open up. So try to set a tone of mutual understanding and curiosity instead of criticism. Ask questions, listen actively, and try to understand your partner's financial background and emotional triggers. Some couples find that having a mix of shared and individual accounts gives them the freedom to spend independently without secrecy. You can agree on how much goes into each account every month and what the joint funds cover while still maintaining some sort of autonomy. If the topic is too sensitive or has already caused friction, you might want to see a financial therapist or couples counselor. A third party can help facilitate difficult conversations and guide you both toward healthier habits and expectations. If you and your partner aren't on the same page financially, it can create cracks in the foundation of your relationship. And that damage caused by financial infidelity can take years to repair. But if you make the effort to build financial intimacy, it can actually bring you closer. According to research from the Indiana University Kelley School of Business, married couples who manage their finances together may love each other longer. And according to the Western & Southern Financial Group survey, married couples with joint savings accounts report the highest marital satisfaction (94%) compared with those who have only personal accounts (82%). If you've been keeping financial secrets from your partner, consider this your sign to slowly open up. It might feel easier in the moment to hide a shopping spree or keep a lingering credit card balance to yourself. But in the long run, honesty will always be less expensive than broken trust. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money 5 Little-Known Ways to Make Summer Travel More Affordable How Much Money Is Needed To Be Considered Middle Class in Every State? Sources Fidelity Investments, '2024 Couples & Money Study.' Western & Southern Financial Group, 'Money Talks Couples Can't Afford to Skip.' News at IU, 'Married couples who merge finances may be happier, stay together longer.' This article originally appeared on How Many People Are Hiding Significant Purchases or Debt From Their Spouse? Sign in to access your portfolio
Yahoo
06-05-2025
- Business
- Yahoo
Only 1 in 4 Americans Have Created or Updated a Will — 3 Reasons To Start Now
Creating a will might not be the happiest part of financial planning, but it's an important one. Unfortunately, many people fall short in this area. Only one in four Americans said they have either created or recently updated a will, according to a new survey of 1,007 U.S. adults conducted by Western & Southern Financial Group. Nearly one-third of respondents have never even discussed end-of-life financial plans with their family or loved ones. Trending Now: I'm a Financial Advisor: My Wealthiest Clients All Do These 3 Things Read Next: The New Retirement Problem Boomers Are Facing Baby boomers are the most prepared when it comes to creating and updating wills — and yet less than half (47%) of boomers said they're prepared. In contrast, 23% of millennials and 20% of Gen Z said they were prepared. Not having an updated will in place can create financial stress for the people you leave behind. More than half of survey respondents (51%) said they experienced financial struggles after losing a loved one. Nearly two-thirds (62%) said they don't feel financially prepared to handle expenses that might arise if they lose a loved one. If you haven't created or updated a will yet, here are three reasons you should start now. You Can Control Where Your Assets Go Creating a will should be a standard part of any financial plan because it lets you determine who will get your assets when you pass away. As Western & Southern noted in a separate report, a will provides 'clear instructions' on how you want your assets to be distributed after your death. Without a will, your estate will be distributed 'according to state laws ' — and those might not align with what you want. A will is especially important if you have minor children because it lets you appoint a guardian for them. This way, you can ensure they're cared for according to your wishes. Discover Next: 3 Signs You've 'Made It' Financially, According to Financial Influencer Genesis Hinckley You Need To Account for Life Changes Updating a will is just as important as creating one because it allows you to account for life changes. Here are some examples of when you should update a will or estate, according to a report from the Department of Homeland Security: When you add a child to your family through birth or adoption. If you've had or are considering a divorce. When a child gets married. When your executor or a beneficiary dies. If you come into a windfall of money from an inheritance, asset sale or some other means. When you can't find your original will. Your Loved Ones Will Have More Financial Security The last thing you want is for your loved ones to face financial hardship when you pass away. But that could be the case if you don't have an updated will. Per the Western & Southern survey:
