Smart Americans rely on workplace for life insurance, insurer says.
In these tough economic times, understanding life insurance is crucial
Many Americans have life insurance policies through an employer, putting them at risk of going without a policy if they lose their job, a major U.S. insurance company says.
With job losses high – 474,000 new unemployment claims were filed last week, the Labor Department reports – workers whose life insurance is offered through an employer are at risk of losing their policy if they leave their company. According to a 2008 report by insurance association LIMRA International, Americans on group life policies have the least coverage, as well.
The insurance company advised consumers to consider taking on a whole life policy, on top of the term life coverage they may already have from an employer. “No matter what your employment situation, you [would] always have the coverage through your permanent policy,” suggested Richard T. Nolan, a financial consultant and insurance agent.
But Americans should act while they are working: insurers may take income into account in their calculations of coverage availability, and people who have an income can get more coverage.
Finally, said the insurance company, consumers shouldn’t rely on rules of thumb to guide them. Many factors must be taken into account in deciding on the amount of life insurance coverage that a person needs.
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Posted: December 10, 2009
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