After reading the title of this short article your first thought may be that of course the author thinks the USA is woefully underinsured, he’s an insurance salesman!
Unfortunately, the numbers tell the story. There is a lack of adequate life insurance coverage in our country. How underinsured are Americans? Only 20% of households would be financially secure for more than five years if the main breadwinner passed. 44% would experience hardship in less than six months.
The cold reality is that not all of us will make it to retirement or age expectancy. Based on the Social Security Administration’s (SSA) actuarial tables some interesting figures come to light. Out of 100,000 males, 95,324 will make it to age 40. Only 79,996 will make it to 65. Quick math tells us that 1 in 6 won’t make to retirement.
Cold, hard facts are one thing, but these numbers tell us so much more. 1 in 6 males left family members behind that counted on them financially. 1 in 6 left gaping emotional holes. Females live longer as we all know, but the number of deaths by age 65 are a little surprising. According to the SSA, of 100,000 40-year-old women, 10% will die by 65.
The life insurance industry cannot address the emotional losses associated with a loved one’s passing but can certainly address the financial losses. The reality is that Arizona term life insurance is inexpensive. The average healthy male can purchase a $1,000,000 20-year term life policy for about $600 a year, $500 for females.
Is $1,000,000 enough term life insurance? This depends on each family’s needs of course. Ten times annual income is a good place to start. Possibly $1,500,000 is a better fit, maybe $500,000? Whatever the amount you choose, what is important is that you are taking action to help solve your family’s financial need during a very trying time.
We should all hope and pray to never file a claim on our disability insurance policy, homeowners, or auto policies, but if events don’t go as planned it is comforting to know we are protected.