A new study (October 9, 2003) by MetLife of widows and widowers reveals the long-term financial toll of the premature death of a spouse and highlights the need for greater consumer awareness about the necessity of adequately assessing personal life insurance needs. Among the major findings of the survey, participants indicated an average recovery period of four to five years before their financial circumstances returned to what they were at the time of their spouses' deaths.

MetLife's research study entitled "Financial Impact of Premature Death" also paints a disturbing financial picture from the point of view of the surviving spouses:

	Two-thirds of spouses (65%) reported that the death had a "devastating" or "major" financial impact on the families' financial security.
	More than one third (39%) of surviving spouses received no life insurance proceeds at all.
	Two-thirds of spouses who did receive life insurance benefits, received proceeds that were less than three times the annual income of the deceased. One in four beneficiaries received benefits that replaced less than one year of the deceased's income.
	Less than half (46%) of the spouses who received life insurance proceeds described the amount of coverage as "adequate."
	Nearly half (46%) of deceased spouses did not have a will.

In addition, many families were required to make significant financial adjustments, including working additional jobs, longer hours; withdrawing money from savings accounts, retirement accounts and investments; moving to smaller, less expensive housing, reducing spending on their children's education; and borrowing money.

"While many Americans may think they have adequate levels of insurance - if they have any at all - those recovering from a loved one's death face a different reality. The findings of this study send a strong message about the importance of financial protection and planning. Now when fall benefits enrollment is underway at many companies, it is the perfect time for employees to reevaluate their families' financial security needs," said Tony Trani, vice president, Life Products Management, MetLife.

Employees should take the time to utilize the educational tools and information - such as a life insurance needs assessment calculator (link provided by Fiscal Agents Insurance Ltd) - that their employer may make available in their enrollment materials or on the Intranet. Life events such as a marriage, a birth of a child or the purchase of a home should all prompt a reevaluation of personal life insurance needs.

MetLife's "Financial Impact of Premature Death" study surveyed 1,000 widows and widowers between August 4-19, 2003. Participants had all lost a spouse within a period of 6 months to 5 years prior to the survey and the deceased was between 30 and 55 years old at the time of death.

A summary of the study can be accessed at www.metlife.com under the MetLife Research Center heading found by choosing the Business to Business banner and clicking on the Employers, Brokers or Consultants categories.

Editors note: As pointed out in last months newsletter the surviving spouse could manage better when some time and thought is focused on the possible circumstances that may be in effect at the demise of the life partner.