Survey: Insurance needs of young parents

108 people aged 30-40 replied to our I-survey. 71% are married with children, and 29% are either married with no children or are singles. 90% are working, and 10% are either self-employed or are looking for a job.

84% said that a young parent set aside $100 to $200 a month as a separate saving for each child.

36% said that a yong parent should insure for 5 to 10 years of earnings; 36% choose 3 to 5 years; 28% choose 1 to 3 years. The average is 5 years.

50% prefer to pay an $1,000 yearly for a life insurance for $30,000 (with return on savings); 37% prefer to pay $150 yearly for term insurance (death and accident) for $100,000; 13% prefer to pay $100 for accident insurance of $200,000.

50% said that a young parent should save 5 to 10% of monthly income on insurance; 26%
will less than 5% and 23% will save 10 to 20%. The average is close to 10%.

78% will choose term assruance (to cover death from all cases) if the budget is limited; 24% will insure for hospital or accident only.

48% prefer to buy a simple, low cost insurance plan first, and do the financial plan later; 44% prefer to do the financial plan immediately.

68% prefer to learn about the basic facts of insurance on your own; 32% prefer to rely on the advice of an insurance agent.

63% prefer to invest in a flexible, long term saving plan that gives an attractive return; 28% prefer to save in a life insurance policy that has a fixed premium and benefit.

76% prefer to buy a separate contracts for protection and for savings; 24% prefer a bundled contract.

49% prefer to approach the insurer directly for a discount: 42% prefer to get a discount from the agent; 9% will buy without a discount (to help a friend to achieve the sales quota).

Period of Survey: 5 Dec - 12 Dec 2005