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.”
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.