Why Americans Are Chronically Underinsured
NEW YORK (TheStreet) -- Why is there such a financial gap between what Americans earn over the course of their lifetime and the amount of insurance they buy to protect those lifetime assets for their families and loved ones?
It's a question insurance industry analysts are asking, too, and the data benchmarks they're using show that financial gap could leave families woefully unprotected in the event of the loss of a breadwinner.
Figures from Nationwide Financial show that the average American who is "married, partnered or has dependents" is underinsured by $1.2 million.
Nationwide arrives at the figure like this:
- The average consumer surveyed by Nationwide will earn about $1.5 million over the course of his or her lifetime.
- That average consumer holds about $300,000 in life insurance coverage.
- That leaves the average American breadwinner roughly $1.2 million short of what they need to replace their lifetime income via life insurance.
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