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Vast Majority of Americans Say Protecting Their Loved Ones Financially is Important Right Now, But Less Than Half Have Life Insurance

Vast Majority of Americans Say Protecting Their Loved Ones Financially is Important Right Now, But Less Than Half Have Life Insurance

Global Atlantic Study Highlights Shifting Financial Priorities and the Need for Planning Amid Pandemic

New research from Global Atlantic Financial Group found that more than eight out of ten Americans (83%) say making sure their loved ones are financially protected is important to them right now, yet two in five (43%) have no life insurance and only one third (33%) believe they have enough life insurance or other assets to protect their family in the event of their own death.

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(Photo: Business Wire)

The “Perceptions of Life Insurance During a Pandemic” study was conducted in August by Artemis Strategy Group on behalf of Global Atlantic, among 1,065 American adults to examine their views on life insurance, estate planning and shifting financial priorities.

Aside from contracting Covid-19 personally or having a family member or close friend contract the virus, the top concern among those surveyed was to ensure their family’s financial wellbeing.

A full two thirds (67%) of Americans say the Covid-19 pandemic has made them think about their own mortality, while seven in ten (69%) have reassessed at least one financial aspect of their life during the pandemic. These areas include their emergency savings situation (54% have reassessed), long-term savings and investments (49%), employment situation (39%), and life insurance (28%).

When asked how many years of income they would replace with life insurance in the event of an early death, nearly six out of ten (57%) said at least two years. More than half of those with $150K or more in household income would replace five or more years of income (54%).

Only one third of Americans had a will in place before the pandemic, but nearly three out of ten either made changes to it during the pandemic,

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The 3 Most Important Stock Market Crash Statistics You’ll Ever See

The 3 Most Important Stock Market Crash Statistics You’ll Ever See

This year has exposed investors to some of the wildest volatility on record. The unprecedented uncertainty created by the coronavirus pandemic caused the benchmark S&P 500 (SNPINDEX: ^GSPC) to lose 34% of its value in only 33 calendar days. For context, it’s taken an average of 11 months for previous bear markets to reach a decline of at least 30%.

In addition to one of the most brutal stock market crashes in history, investors also witnessed a ferocious rally from the March 23 low. It took less than five months for the S&P 500 to hit a new all-time high from the bear market low, which is also a record.

With COVID-19 far from gone and the U.S. about to enter the heart of flu season, the question has been raised if this roller coaster ride could continue. History would certainly seem to suggest that additional volatility, with even another stock market crash, is possible.

But should another stock market crash or correction occur, there are three extremely important statistics you’ll want to keep in mind.

A person circling and drawing an arrow to the bottom of a stock market crash on a chart.

Image source: Getty Images.

1. Stock market corrections happen, on average, every 1.84 years

One of the most important things to realize about stock market crashes and corrections is that they’re extremely common. I know it might feel like the investing powers that be are specifically trying to smite you and your nest egg at times, but pullbacks in equity valuations are the price of admission to the greatest wealth creator on the planet.

Since 1950, the S&P 500 has undergone 38 official stock market corrections — official in the sense that the decline reached an unrounded 10% from a recent closing high. This works out to a correction of at least 10%, on average, every 1.84 years. Of these 38 corrections, nine have

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