Who Among Wealthy Investors is Most Likely to Have Life Insurance?

Marital status and retirement age are two primary factors in who does or does not have life insurance, according to a new Millionaire Corner study of Millionaire and Ultra High Net Worth households.

Among those with an insurance policy. Eight-in 10 are still working, have children, making $200,000 and up, or are younger than 55 years-old.

Not surprisingly, the least likely among the wealthier households to not have an insurance policy are those whose spouse has passed on (53 percent). as well as those who are single (47 percent), living with a partner (40 percent), have an income of less than $100,000, or investible assets between $5 million and $7.9 million (38 percent).

Among Millionaires and UHNW households, those with incomes of $250,000 and up are most likely to have ample insurance ($1 million or more of coverage), followed by those under 55 (31 percent), dependents (29 percent0, those who are still working (27 percent) and those with investible assets between $7.5 million and $20 million.

Nationally, a new Gallup poll finds that fewer Americans have employer-based health insurance, even in wealthier households. The percentage of Americans with this coverage has been declining since 2008 and dropped to a new low of 44.6 percent this year. Seventy percent of households with an annual income of $90,000 reported getting their health insurance from their employer in 2011, a decrease of nearly a percentage point over 2010. The decrease was more severe in households with an annual income between $36,000 and $89.999. Nearly 59 percent report having this coverage in 2011, down from 61 percent the previous year.

Continued high unemployment is the most likely factor in this decline, but Gallup observes it is not the only cause. Full- and part-time employees are also becoming less likely to get their health insurance on the job, either because they cannot afford their company’s health insurance or because the employer is not offering it anymore, Another factor is that during the prolonged economic downturn, the number of part-time workers, whose hours have been scaled back or cannot find full-time employment, has increased. These workers are typically not offered health benefits.