New York Life recently released a report based on two of its surveys that I found most interesting. Here’s some of what it said:
Americans say they want enough life insurance to cover expenses for at least 14 years after the loss of a breadwinner, but in reality only have three years of protection in place. This finding is in line with the Insurance Barometer Study that Life Happens and LIMRA have conducted over the past several years.
Before the Great Recession took solid hold in 2008, Americans reported a median shortfall between their life insurance coverage and their self-described financial needs of $289,378. New York Life noted that today, Americans are reporting a $320,000 “gap.” This represents a 59% shortfall between Americans’ financial goals and the money they would have available from their life insurance policies in the event of the breadwinner’s death.
The gap has grown by 11% since 2008, putting Americans in even greater danger of missing widely-held 
goals such as paying off a mortgage, funding a four-year college education or financing a secure retirement because they lack adequate life insurance protection.
The Life Insurance Gap survey examined the financial planning attitudes and behaviors of 1,000 Americans age 25 and over with dependents. It focused on how much life insurance coverage they had in place and what they want their life insurance policies to cover in the event of the death of the breadwinner, resulting in a self-reported gap.
To determine how much life insurance may be appropriate for you, and if you have a gap to fill, use this easy online Life Insurance Needs Calculator.
