Why Life Insurance Is Too Often Overlooked
April 10, 2020 by H. Adam Holt
Potential disability is the most under-addressed topic of conversation between financial advisors and their clients.
Life insurance coverage is also frequently overlooked.
Asset-Map recently conducted a survey of 225,000 households to determine whether clients would generally be underinsured in the event of a loss of life. The data revealed that over 14,000 clients were “grossly undercovered” (with an exposure of at least $1 million) relative to their income, adding up to approximately $43 billion total in underinsurance.
Another study we ran for the same 225,000 households indicated that average household debt, typically due to a mortgage, closely matched average annual household income. But average life insurance coverage, including both household parties, was only about three times income.
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