Pessimism About Financial Security Might Be Slowing

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Tue Jun 16, 2009 6:01am EDT

COUNTRY Survey:  Fewer Americans say things are getting worse

BLOOMINGTON, Ill., June 16 /PRNewswire/ -- As the debate over the direction of
the economy continues, Americans' pessimism about their financial security is
slowing.  The latest COUNTRY Financial Security Index(R) dipped 0.3 points to
64.6 in June, marking the smallest overall decline since October 2008.

Americans' sentiments suggest the economy may be turning a corner.  While 45
percent say their level of financial security is getting worse, this is an
improvement from April when nearly half (49 percent) felt this way.  In
addition, those rating their overall financial security as excellent or good
increased two points in June (39 percent), marking the first increase since
August 2008.

"While we aren't out of the woods yet, it is uplifting that the slide
continues to slow," says Keith Brannan, vice president of Financial Security
Planning at COUNTRY Financial.  "One of the most difficult things for us all
in these tough times is maintaining our long term financial needs while making
sure the essentials are covered.  Now is the time to plan not only for goals
that require us to save, but also for protecting what we've already achieved. 
If possible, review your insurance as well as your financial situation. As the
economy turns, you don't want an unexpected storm or accident to derail your
long-range plans by using up your available savings."

While Americans' pessimism is decreasing overall, the effects of the sluggish
economy are impairing their short-term outlook.  A short-term component of the
COUNTRY Index registered 12 in June, a drop from 14 in April.  The short-term
component specifically measures Americans' sentiments about their near-term
finances to provide greater insight into how Americans are feeling about their
financial security.

Savings and debt concerns hit record high

    --  Nearly one-quarter (24 percent) are not confident in their ability to
        pay their debts and more than half (52 percent) were unable to set
aside
        money for savings or investments in June, both increases since April. 
        This marks the greatest number of Americans unable to meet these
        short-term goals since the COUNTRY Index began in February 2007.




Americans express renewed confidence in college funding 

    --  Sixty-three percent of Americans say they are confident in their
ability
        to send their children to college, up four points from April and the
        largest number since October 2008.




Confidence in insurance erodes

    --  Confidence in property insurance has steadily declined since August
        2008.   In June, one-in-five (19 percent) said they are not confident
        their house, car and possessions are adequately insured, marking the
        highest number on record.




"It is critical to protect what you already have against an emergency or
unforeseen event, especially in a tough economy," adds Brannan.  "Financial
security is more than just savings and investments.  It is also about
safeguarding your home, property and income."

Individuals can learn more and compare their own results with the national
COUNTRY Financial Security Index by visiting
http://www.countryfinancialsecurityindex.com. The next COUNTRY Financial
Security Index will be released August 18, 2009 and subsequently every other
month.

The COUNTRY Financial Security Index
The COUNTRY Financial Security Index(R) is a bi-monthly measure of Americans'
sentiments toward their overall financial security. It is an aggregate of
various factors comprising financial security including savings and
investments, financial planning, retirement, education and asset protection.

The COUNTRY Index was created by COUNTRY Financial
(http://www.countryfinancial.com) and is compiled by Rasmussen Reports, LLC
(http://www.rasmussenreports.com), an independent research firm, based on a
national telephone survey of at least 3,000 Americans.

The margin of sampling error for a survey based on this many interviews is
approximately +/- 2 percentage points with a 95 percent level of confidence.

About COUNTRY 
COUNTRY Financial (http://www.countryfinancial.com) serves about one million
households and businesses throughout the United States.  It offers a full
range of financial products and services from auto, home and life insurance to
retirement planning services, investment management and annuities.



SOURCE  COUNTRY Financial

Emily Reed of Ogilvy Public Relations, +1-312-397-6056,
emily.reed@ogilvypr.com, for COUNTRY Financial; or Jay Verner of COUNTRY
Financial, +1-309-821-3372, jay.verner@countryfinancial.com
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