In these challenging times, life insurance remains an affordable source of stability when it comes to financial security.
The prospect of shrinking retirement savings and rising unemployment rates has made financial peace of mind hard to come by these days. Americans are looking for ways to cut back on expenses and shore up their savings, and many are considering life insurance as a way to bridge the gap created by other financial losses. According to a report called The Value of Life in Tough Economic Times issued by Prudential Financial in September, 2009:
• 94 percent of those surveyed have maintained or increased the amount of their life insurance over the last 18 months.
• At the same time, 90 percent acknowledged a loss of assets, and 55 percent indicated a traumatic financial event–such loss of job, income, retirement contributions or health-care insurance over the past 18 months.
• Despite the fact that 70 percent have cut back on routine expenditures, 84 percent indicated they view the cost of life insurance as relatively minimal when compared to other regularly budgeted items.
Prudential’s study also revealed that for 93 percent of Americans life insurance protection for their family is a “must.” In addition, 95 percent recognize that their policies could be significantly more expensive to obtain at an older age, and 55 percent are concerned it could be harder to get coverage due to health conditions.
While traditional sources of retirement income like stocks and retirement accounts have become less dependable, now is a good time to take a closer look at life insurance coverage and the protection it offers in this volatile financial climate. In fact, increasing life insurance protection for loved ones to help offset the value of assets that have been lost makes good financial sense.
How much coverage is right for you?
When purchasing life insurance coverage, statistics show that even among those insured by an individual policy, the majority have less than three times their annual income in coverage. Very few have the minimum recommended six to seven times their annual income coverage. As a result, only 27 percent of consumers in the Prudential study said they were “very confident” that their current life insurance coverage is sufficient to maintain the same standard of living for their loved ones in the event of their premature death. The fact is, tough economic times call for consumers to re-examine the amount and type of life insurance coverage they have to make sure it is adequate for their current and future financial needs.
A financial professional can offer information and advice to help you determine the amount of life insurance coverage that fits your individual needs. For more information, download a copy of The Value of Life in Tough Economic Times.
Tommy Norris This is a sponsored Financial Services article. Tommy owns the Norris Group and has 23 years of Insurance and Financial Service experience and can help with any of those needs, including Employee Benefits. In 2002, the Norris Group was recognized as “Small Business Of The Year, “ by the Metro Augusta\Columbia County Chamber of Commerce. Reach Tommy at 706.869.8888 or tommynorris@comcast.net
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