02.16.26

Middle-Class Households Face Worsening Cost Pressures

by: Brooke Lacey

The American Council of Life Insurers' Financial Resilience Index found that 42% of middle-class households are not confident that they could pay an unexpected expense of $5,000 and bounce back financially. “While resources, like income, improved slightly, higher costs for daily essentials and modest luxuries weighed on consumers’ finances,” according to David Chavern, ACLI president and CEO. “Middle-class households are not very or not at all confident that they could pay for an unexpected expense like a car repair or broken appliance and recover financially.” The study also found that many households remain underinsured, with respondents noting that those with children under 18 are no more likely than other middle-class households to say they maintain life insurance coverage. “The survey finding reinforces something we’ve known for a long time — many families are underinsured. The work the financial services industry does to give families the financial protection they need is crucial, now more than ever,” Chavern said.

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