SAN FRANCISCO, May 28, 2020 (GLOBE NEWSWIRE) -- Today, Ethos, the company making life insurance accessible to all, released its inaugural Financial Legacy Index. This report shows for the first time how Americans think about components of their financial legacy and the steps they’re taking to protect their family’s financial future.
In this report, Ethos defines “financial legacy” as the financial situation one leaves behind for their loved ones; it is made up of everything from a person’s assets and savings accounts to their debt, life insurance policies, and more. This survey, conducted before the onset of COVID-19, assesses the financial circumstances of American families before the pandemic. Many have since faced devastating economic and societal impacts, and nearly all are now preparing themselves and their finances for a recession. How Americans perceive their financial legacies and the steps they are taking to protect their families is more relevant than ever.
Here are some of the key findings:
- While a strong majority of Americans (82%) value leaving behind a strong financial legacy, a significant number of people (38%) lack confidence they will do so.
- 52% of Americans say they often worry about the financial situation they will leave behind for their children/future children after they pass away.
- The majority of Americans have not taken critical steps toward protecting their family’s financial future if the unexpected happens:
- 61% have not taken out a life insurance policy
- 60% have not contributed to a personal savings account
- 61% have not contributed to a 401k or other retirement savings account
- One-third (33%) of Americans say their family would be left financially unstable or bankrupt in the event of their death.
- 80% of women say most Americans can’t easily afford the average price of $9,500 for funeral and burial expenses for a loved one, compared to 64% of men.
“The devastating economic and health impacts of COVID-19 have spurred a renewed sense of urgency among Americans to protect their family's financial future. When we conducted this survey in a pre-COVID-19 world, it was clear Americans weren’t financially prepared for tragedy – one-third said their family would be left financially unstable if they died suddenly. Now, what was once unimaginable for most has become a reality for many," said Peter Colis, CEO and Co-founder at Ethos. “This report was able to gauge the state of American financial preparedness before the onset of the pandemic, and as we look to our future, it's more important than ever that people have access to the tools and resources they need to protect their family's financial future."
This survey was conducted online within the United States by The Harris Poll on behalf of Ethos between December 18-20, 2019 among 1,978 adults ages 20+, and the survey provides demographic breakdowns with regard to gender, age, and access. Ethos plans to continue to commission the Financial Legacy Index at a regular cadence in order to observe trends of Americans’ feelings toward their financial legacies over time. See the full Ethos Financial Legacy Index here.
ABOUT ETHOS
Ethos is a new kind of life insurance provider making getting coverage easy and accessible for millions of families. Ethos uses predictive analytics and sophisticated data technology to eliminate traditional barriers to life insurance and bring the industry into the modern age. The company built its technology from the ground up with a focus on creating a seamless customer experience; a mobile-first, online application process that takes minutes instead of weeks, and offering coverage without a medical exam for most applicants. The result is a life insurance company that puts people first. Ethos is backed by GV (formerly Google Ventures), Sequoia Capital, Accel, Goldman Sachs, and Arrive, a subsidiary of Roc Nation. The company is headquartered in San Francisco with offices in Austin and Singapore. To learn more, visit www.ethoslife.com.
Press Contact
ethos@launchsquad.com
415.625.8555
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c329d299-c7d2-4487-bddf-e3b8e92361bd