2004 PERSONAL INSURANCE

摘要

Asound insurance program should be the foundation of any personal finance plan-yet too many Americans ignore this aspect of their lives, according to industry experts. For those who have other people dependent on their incomes, this has particularly important ramifications. In case one or both breadwinners die, life insurance is designed to provide for survivors, assuring them a safety net in the form of a guaranteed stream of income. This is a vital component of financial planning for couples or single parents with young children, yet most U.S. households have inadequate life insurance coverage. According to Northwestern Mutual, the most underinsured groups are those with the largest needs-married parents on average own just 20% of the recommended coverage and single parents have only 16%. Moreover, the average recommended amount of insurance is $459,000, while the average amount owned is just $126,000.