By standard measures, the U.S. economy is strong.
The GDP rose 2.8% in the third quarter. Unemployment filings are at their lowest level in six months. And inflation remains below 3%.
But these official numbers only tell part of the story. For many Americans, the painful impact of three straight years of above-average inflation, capped by a punishing 8.0% spike in 2022, resonates much more strongly than any broad macro-level economic figures.
The ACLI Financial Resilience Index, which measures middle-class Americans’ ability to manage life’s challenges and plan for a stable financial future, reflects their concern over affordability. The index declined from the first quarter of 2024 to the second quarter as household income growth decelerated.
An accompanying Financial Resilience Survey revealed that middle-class households are most concerned about their ability to afford daily essentials like groceries and electricity over the next year. They are also concerned about how a health event or an unexpected expense greater than $5,000 would place stress on their finances.
Many Americans turn to life insurers for financial protection against these unexpected expenses. Disability insurance protects wage earners who are forced to take time off work due to an untimely injury or illness. Supplemental benefit products are used by families to pay for additional expenses arising from illness or injury that are not covered by major medical insurance. And should tragedy strike, life insurance enables families to survive financially after the loss of a loved one.
No one knows for certain what the economy will be like next year or the year after that. But life insurers bring certainty to an uncertain world. Life insurers help Americans prepare for any eventuality, easing the burden on government. When Congress takes action on how to extend tax relief for individuals and small businesses in 2025, it must ensure that it doesn’t initiate any tax increases on life insurers and their customers that could limit access to affordable financial protection.
Jill Kozeny serves as Executive Vice President & Chief Advocacy Officer at the American Council of Life Insurers (ACLI). Kozeny is a member of the Executive Management Team and reports to the President and CEO. Kozeny leads ACLI Government Relations, Public Affairs, Research, and the work of the Chief Inclusion Officer to build opportunities and expand access to family financial certainty through all stages of life.
