More than 40% of adults have no life insurance coverage, and about 20% of those who do have coverage say they do not have enough.
In light of a recent survey which found that 35% of U.S. households would face financial adversity within one month if a primary wage earner died, Craig Siminski, of CMS Retirement Income Planning, shares an article with us in hopes of helping us address this widespread lack of protection:
The most common reasons people give for not purchasing life insurance are that it is too expensive and/or they have other financial priorities.
That’s not surprising — money can only go so far — but life insurance is not as expensive as many people think. Most consumers estimate the cost of coverage at more than three times its actual cost.
If you need more coverage or have no coverage at all, it’s worth exploring the true costs and available options.
How Much Do You Need?
A common guideline suggests having coverage equivalent to at least seven to 10 times the insured’s annual salary, but some people may need more. There is no universal formula, and the amount you need depends on your family’s living expenses and other sources of income. Your financial professional can help you assess your needs more comprehensively.
You may have group life insurance through work, but the face value of employer-based policies is generally low — typically one or two times your annual salary. And you might lose coverage if you change employers. An individual policy is yours to keep for as long as you …
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Craig Siminski is a CERTIFIED FINANCIAL PLANNER™ professional, with more than 21 years of experience. His goal is to provide families, business owners, and their employees with assistance in building their financial freedom.
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