Young Americans with dependents have on average a $610,000 gap in life insurance coverage, new research shows.
The Guardian Life Insurance Company of America and LearnVest Planning Service released this finding in a jointly conducted study, “Life and Disability Insurance: What 20- and 30-Somethings Think.” The report explores the attitudes and behaviors of men and women in their 20s and 30s.
The report identifies a large gap between the dollar amount respondents would want to “make all their dependents’ troubles go away” ($1 million on average) and the average face amount of their policies ($390,000).
“The discrepancy may be due in part to a belief that life insurance obtained through work is all you need; 65 percent of respondents get their coverage this way,” the report states. “While an employer’s group plan can be a great start, typical coverage amounts may not be enough to offset the economic impact to you family if you’re not there to provide for them.”
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While almost 60 percent of respondents’ significant others have life insurance coverage, the report adds, 35 percent say they don’t know what the policy type is.