A recent survey by New York Life that was highlighted in USA Today shows that Americans are underinsured when it comes to Life Insurance, and they know it.
Generation X, those born between '65 and '76, report that they are underfunded in the case of an unexpected death by nearly half a $ million. Of those Americans, age 37 to 48 surveyed, report having an average of $260,000 in coverage. That same group believes that coverage in the amount of over $700k would be more adequate.
But the gap is perhaps even broader. In this economy where budgets are tight and every dollar is allocated, the need for life protection is even greater. Investment income is down, credit card debt is up, and most Americans have lost the equity in their homes. These factors contribute to increased need to protect you and your family from tragedy.
As a rule of thumb, we need to have life insurance in the amount of 5-10 times our income. Think about a young family and the fact that it takes $50,000 per year to run the average middle class household, not to mention college and cost of living increases on the horizon. To replace that $50k per year for 20 years is simple math. $1,000,000.
There are lots of options when it comes to Life insurance but one thing is for sure; some coverage is better than no coverage. Don't delay this important decision, protect your family.
Talk to your Friends in the insurance business today about a policy to meet your specific needs.
--Steve Scott