The majority of Americans struggle financially. Only 32% of Americans can cover a $400 emergency expense with cash. Twenty percent of adults had a major, unexpected medical expense in the last 12 months. Sixty percent of consumers are living paycheck to paycheck, an increase from 57% in September 2021. Nearly one in three workers, including those earning more than $100,000 a year, run out of money before payday.
Disability insurance and a secure retirement go hand in hand. The impact of global events served as a wake-up call, highlighting the importance of protecting your income from the impact of sudden illness or injury. Most consumers have no disability insurance and may look to other sources for financial assistance. Disability insurance helps protect income. It safeguards retirement goals by avoiding early withdrawals that can be costly in the long run.
Regarding life insurance, understanding the market is important. What would happen if you suffered an untimely death? Your family or loved ones may need to pay for:
− Some (or all) of the funeral costs.
− Unpaid medical bills.
− Outstanding loans or credit card debt.
− Mortgage or rent for a period.
− Additional expenses due to lost income or other incidentals where extra funds would be needed.
Based on the LIMRA Life Insurance Consumer Studies, 52% of consumers reported owning life insurance. However, 102 million Americans know they likely need more coverage. Forty-two percent say their household would face financial hardship within six months should the wage earner die unexpectedly. Twenty-five percent say it’s as little as one month
What to know before buying
— Understand the basics.
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— Determine how much coverage is needed.
— If you already have a policy, reassess if it meets your current needs.