Young Parents Suffer from Severe Gap in Life Insurance Coverage
America’sÂ young parentsÂ are doing a good job of purchasingÂ life insuranceÂ to take care of their families, but according to a study released this week, many don’t have enough to cover their dependents in the long haul.
The coverage gap for these young adults revealed that many are relying on employers to furnish their insurance needs. It’s important for them to understand how important additional coverage is and also learn where to buyÂ life insuranceÂ coverage outside of the job.
Young Parents Have Average $610,000 Life Insurance Gap
The new study conducted by The Guardian Life Insurance Company of America and LearnVest Planning Service, titled â€œLife and Disability Insurance: What 20- and 30-Somethings Think,â€ explored the attitudes and behaviors of young parents.
One finding in the study was that many individuals in this age range often have a large gap between the dollar amount that would â€œmake all their dependents’ troubles go awayâ€ ($1 million) and the average face amount of their policies ($390,000).
The researchers found that 65 percent of respondents purchased coverage through their employer and assumed this was enough. In actuality, they wereÂ under-insuredÂ andÂ needed much more to make up for the loss of a head of household’s income.
The study also revealed that many respondents were not sure what type of coverage their spouse had, while about one in five said they don’t believe they need coverage because their spouse had life insurance.
The key to ensuring young parents carry the appropriate amount of coverage is not just examining their coverage life insurance as a couple, but looking outside of their employers’ insurance for additional coverage.
Where to Buy Life Insurance Coverage
For young parents who realize they may suffer a gap in life insurance coverage and need something outside of their employers, the process of finding that coverage is quite simple. Here is a short list showing where to buy life insurance for the family:
- Search online:Â One of the easiest ways to locate life insurance is to search online. Many companies offer free quotes via their websites and some even allow for purchases to be made online.
- Contact brokers:Â Another option is to find a life insurance broker who has connections with numerous companies. Often, brokers are able to snag deals that can discount prices.
- Call local agents:Â You can also pull out your phone book and call agents in your area to acquire quotes over the phone.
- Check your bank or credit union:Â An often overlooked option is to check with your bank or credit union. Sometimes, financial establishments strike deals with insurance companies and offer those deals to customers or members.
Having life insurance furnished by an employer is a wonderful perk of the job, but in most cases, the coverage offered is insufficient. So after you’ve examined your policy and determined how much more you need, take time to purchase additional coverage so you know your family will be properly cared for, if needed.
(Image courtesy of photostock /Â FreeDigitalPhotos.net)