Financial Advisor

Protecting Family Finances

Americans understand the value of planning for their family’s future. In fact, according to the Life and Health Insurance Foundation for Education, 81 percent of us say we need life insurance to cover costs after we’re gone. Still, only 41 percent of people in the U.S. own an individually purchased policy.

And while many companies offer life insurance policies as a benefit, they typically only cover one to two times your annual salary-an amount that falls well short of the coverage experts recommend people carry.

So why the disconnect? Here’s a look at a few common reasons for not having life insurance-and suggestions for moving past them and beginning to protect your family’s finances.

Reason One: I Don’t Need It

If you have children who are dependent on your income or caretaking, financial experts recommend life insurance coverage. What’s the right amount? Experts suggest anywhere from seven to 10 times your annual salary or caretaking costs. Money magazine says “the more children you have, the more debt you carry and the longer your family will need help (say until your kids are out of college) and the closer you should be to the top end of that range.”

Reason Two: It’s Too Expensive/I Get It Through My Job

Term life insurance rates are lower than you might expect. And if you think coverage through your employer is sufficient, consider this: What happens if you leave your job? Most employer-provided policies aren’t portable and there’s no guarantee your new employer will offer this benefit.

Reason Three: I Haven’t

Gotten Around To It

If you know you need life insurance-but you just haven’t made time for it-contact a financial expert today. Primerica representatives can meet with you at a convenient time in your home.

Financial professionals at Primerica have also created a guide that shows you how to take control of your financial life.

To get a copy of “How Money Works,” write to Primerica, 3120 Breckinridge Blvd., Duluth, GA 30099, ATTN: Corporate Relations, or call (770) 564-6329. For more information, visit www.primerica.com.

• John Addison is co-CEO of Primerica, a subsidiary of Citigroup, Inc.

Addison

Eighty-one percent of us say we need life insurance but only 41 percent of people in the U.S. own an individually purchased policy.

Tag: Protecting Family Finances