- They Trust Doctors More Than Financial Advisors - - They Are More Likely to Insure Cars and Homes Than Lives -
BLOOMINGTON, Ill., Aug. 21 /PRNewswire/ -- As uncertainty swirls around
the state of the economy, women are responding in different ways as it relates
to the people they trust to help manage their lives and financial future,
according to a new study from State Farm Life Insurance Company.
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The Musts of Trust
It is no secret that today's women are paying closer attention to their
finances and represent an ever-growing segment with increased purchasing
power. What is overlooked, however, is how purchasing power is related to the
development of more sophisticated relationships and inherent levels of trust
with the professionals who assist women with health, wealth and long-term
financial security decisions.
The landmark study offers an in-depth look at women's attitudes toward
financial security issues and what women want from their professional service
providers to develop the trust that leads to a business relationship.
The Musts of Trust Study found that while today's women are reporting high
levels of confidence in handling their finances, the same women admit they are
not really in control of their personal finances. In fact, according to the
study, they're waiting for major life events to occur before getting a grip on
their spending, saving and life insurance planning.
Further, as financially assured as they claim to be, women have a trust
barrier with the professionals who can help them manage their money. The
study found that American women do not fully trust the professionals who can
guide them through fiscal turmoil.
For example, women are trusting professionals of health more than wealth:
doctors are inherently trusted by 79 percent of women, while just 36 percent
of women feel the same way about their financial advisors. Thus, women are
more willing to trust a doctor with their lives than a financial adviser with
their money.
"Women are telling us that they distrust financial advisers and tend to
wait for something significant to affect their lives before getting serious
about their finances," said Susan Waring, executive vice president and chief
administrative officer of State Farm Life Insurance Company. "However, it is
crucial for women to be aware and in control of their personal finances at all
times, no matter what is going on in their lives. We've seen the economy take
unexpected turns and women must be prepared for the unexpected."
Musts of Trust Study Headlines
-- 46 percent of American women claim to be extremely confident in the way
they handle their household's finances.
-- The majority of American women tend to wait for something to happen,
whether it is a positive or negative event (e.g., death, divorce,
promotion, inflation, etc.) to gain control of their finances.
-- Honesty, confidence and friendliness contribute the most to women's
trust when considering a service-oriented relationship.
-- Sense of humor, recommendations from others and shared interests
contribute the least to women's trust when considering a service-
oriented relationship.
Dollars and Sense
The Musts of Trust Study found that while nearly half (46 percent) of
American women claim to be extremely confident in how they handle their
finances, less than four in ten (36%) inherently trust financial advisers and
stockbrokers. During a time of economic uncertainty, women are going solo
when they need the most help. Instead of reaching out to the financial
service providers who can help them recover from any lost income, women are
tackling their policies and portfolios on their own, which may set them up for
failure, according to Waring.
This information concerns financial professionals who may see economic
trends more clearly than the average American. Mary Quist-Newins, CLU(R),
ChFC(R), CFP(R) of The American College, the nation's leading financial
services educator, commented on the study's findings.
"Financial professionals and insurance agents are there to help guide
individuals through their personal experiences," said Quist-Newins. "These
professionals have the necessary tools to educate women in planning today for
tomorrow according to their individual and family needs."
Quist-Newins also is State Farm's chair for women and financial services
and is a former senior financial consultant for a major financial services
provider.
Additionally, when asked which service providers they had strong
relationships with -- where the professional went above and beyond his/her
normal level of service -- financial professionals ranked low. More than half
(56 percent) of the women surveyed had strong relationships with their
doctors, while only 12 percent developed strong ties with their financial
advisers, and 16 percent with their insurance agents.
What are Women Waiting for?
As secure as female Americans say they are with their personal finances,
there's a barrier here: they're waiting for major life events to occur before
saying "yes" to taking action and gaining control of their finances.
What are Women Paying for?
One product that all Americans should have settled in order to be prepared
for life's "what ifs" is life insurance. "Unfortunately, women believe that
life insurance policies do not fit within their budget," said Waring. "A
policy that protects your present and preserves your future should not be
disregarded." Waring added that State Farm offers complimentary Insurance
Financial Reviews that help in finding products that fit individual needs and
goals.
According to the Musts of Trust Study, American women are insuring
tangible goods but not their own lives. Why? They think they can't afford it.
So what do they insure?
-- Cars (86 percent)
-- Health (81 percent)
-- Homes (63 percent)
-- Lives (57 percent)
"No one knows what tomorrow will bring," said Waring, "but by being
prepared for it with the proper life insurance policy, you can help safeguard
your family's future plans."
About State Farm's Musts of Trust Study
The State Farm Study was conducted by Kelton Research in 2008 using an
e-mail invitation and an online survey. The Musts of Trust Study consisted of
an online survey of 1,500 nationally representative American women over the
age of 18. While the study focused on women, five hundred nationally
representative American men over age 18 also were surveyed to produce a
comparison on what it takes to win someone's trust. For the survey of 1,500
nationally representative American women, the chances are 95 in 100 that a
survey result does not vary, plus or minus, by more than 2.5 percentage points
from the result that would be obtained if interviews had been conducted with
all persons in the universe represented by the sample. To view the complete
survey results, questions and methodology, please visit
http://www.StateFarm.com.
State Farm Life Insurance Company
State Farm Life and Accident Assurance Company
Bloomington, IL
State Farm International Life Insurance Company Ltd.
Aurora, Ontario
About State Farm
State Farm(R) insures more cars and homes than any other insurer in the
U.S., is the leading insurer of watercraft and is also a leading insurer in
Canada. State Farm's 17,000 agents and 67,000 employees serve 80 million
auto, fire, life and health policies in the United States and Canada, and more
than 1.9 million bank accounts. State Farm Mutual Automobile Insurance
Company is the parent of the State Farm family of companies. State Farm is
ranked No. 32 on the Fortune 500 list of largest companies. For more
information, please visit statefarm.com(R) or in Canada statefarm.ca(R).
Carol Carey-Odekirk
State Farm Insurance Company
(309) 766-6781
carol.carey-odekirk.btdj@statefarm.com
Katie Poorman
GolinHarris
(312) 729-4124
kpoorman@golinharris.com
SOURCE State Farm Life Insurance Company
