Wednesday, July 2, 2014

How Long Are Your Loved Ones Covered Under Your Current Life Insurance Policy?

When considering a life insurance policy, it is common practice to think of covering your family's financial needs when you are gone. How does a person determine the amount of time to provide for? How can you take into account cost-of-living increases when they have no idea what will happen in the future? Many people think that they are creating a cushion for a certain amount of time, only to find that they have not prepared sufficiently. The following article explores this conundrum, and offers some great advice.

The survey found that the life insurance coverage gap varies by geographic region, with families in the Western U.S. facing the biggest gap of $457,000. The median amount of life insurance coverage in place for families in the Western U.S. is $250,000, compared to $707,000 that they said would cover their needs. The Northeast had the next biggest coverage gap of $334,000, and the South’s coverage gap came in at $302,000. The Midwest had the smallest coverage gap of $229,000–because their self-reported needs at $430,000 were the lowest.

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