HIL Quotes: Military Members And Veterans Are Financially Savvy, USAA Life Insurance Survey Shows

Here at USAA, we just completed our second annual Life Insurance Survey. The research provided insight into how people think about life insurance and other ongoing financial issues in the early years.

This year, the emphasis was on inflation. One of the unique features of the survey is the demographic mix of participants. Responses reflect a balanced mix of people with military connections (currently serving, veterans, and military spouses) and the general United States population.

If there are trends this year, they confirm what I've heard at events and conversations with members of the USANA over the past few years: comparatively, the military community is doing well financially.

You can read all the details at www.usaa.com/lifesurvey, but here are some of the results that impressed me.

Only half of Americans worry that inflation will affect their retirement.

I am confident in saying that he must be the selfless half. Hell, I heard it last year before inflation started. Even a 3% interest rate hike can derail your retirement lifestyle. So make sure inflation is a part of your retirement plans and projections. If I'm wrong, you'll be better off living your best life.

Soldiers ahead.

According to our research, the military outperforms its civilian counterparts in many important areas. From emergency funds to adequate life insurance, military-related respondents had a double-digit positive advantage over civilians.

Cost is a key factor when deciding on life insurance.

According to all respondents, "Cost of Coverage" is less important than "Type of Coverage", which is slightly below 70%. In today's environment, it is easy to understand the behavior of price conscious shoppers. When evaluating the pros and cons of life insurance strategies, I think it's a good idea to start with what you want (how much coverage) and then figure out how to apply it (cost and type of coverage).

Little life is different.

When you hear the word diversification, you probably think of stocks, bonds, and cash. However, what I'm talking about here is a combination of life insurance coverage from your employer and yourself. Employer plans are generally simple and useful, but having coverage outside your employer ensures that some of your coverage is transferable if you change jobs. Less than 20% of respondents had professional coverage and had private insurance.

A third person leaves life insurance to invest.

I thought this reveal was a bit odd. If we had the money to pay off all our debts, cover years of work, pay for our children's education and pensions, we wouldn't necessarily need life insurance. The "explosion" of death benefits is what makes life insurance unique.

In most cases, we have life insurance to cover the gap until the gap is closed because we either have the funds we need or the need is gone. While putting $50-$100 into an investment account can pay dividends decades from now, using the money for life insurance today can help prevent financial hardship.

Options for combating inflation seem plausible.

Your first line of defense against inflation is your spending plan. More than half of all respondents had to cut back on everything to make it work in this area. The top two spending cuts are discretionary spending (41%) and vacation planning (37%). Ideally, these settings should be enough to get you to the right place. Less than a quarter of respondents had to cut back on investments or cut insurance. Surprisingly, 45% did not make any adjustments.

I can't wait to share more surveys in the next column, but in the meantime, check it out for yourself!

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