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Life insurance coverage 'needs to be improved for many'
September 02, 2010
Many people may need to take out a more comprehensive life insurance policy, it has been suggested.
A large number of people are concerned that their life insurance policy may not be providing them with an adequate level of cover.
The Principal Financial Well-Being Index found that 82 per cent of the people that were interviewed for it had some form of life insurance, but 38 per cent were not confident they have enough protection.
It was also revealed that 29 per cent think they just need five times their annual salary to be properly covered, with 18 per cent thinking twice the amount is enough.
However, coverage that is between seven and ten times higher than a person's salary is actually the recommended level of life insurance.
Earlier this week, Consumer Reports blogger Greg Daugherty warned that people with a family to look after who do not have life insurance are putting their dependents at the potential risk of "financial catastrophe".
He said having life insurance can be more important than paying off debts or retirement planning.
Published by Sue Clarkson
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