Personal Life Insurance

Life insurance is one of the most versatile and widely used financial planning tools available. It can be used to meet many needs, from continuation of income, to estate planning, to security for a loan or mortgage.

The good news is that almost 75% of respondents to a 2004 LIMRA International survey reported that they had some kind of life insurance, whether through their employer (group coverage), individually purchased, or both.

The bad news is that the average respondent insures only about 3.6 times their annual income. Results varied widely by region, with 80% of Mid-westerners having life insurance, but only 60% of Los Angeles area respondents. Pittsburgh residents were on the low end of the income multiple (3.0), while westerners averaged 4.6 times their income. Although everyone’s need for life insurance is different, the historical guideline has been about 7 times annual income. Most insurance experts now recommend between 5 and 8 times income.

Not surprisingly, most Americans buy life insurance near a “life event”, such as marriage, divorce, birth of a child or purchase of a home. No other product combines the flexibility and security of life insurance to meet the needs of families following the untimely death of an individual.

If you have questions about life insurance, or would like a quote, call Noyes, Hall & Allen at 799-5541.

Related Links
Insurance Information Institute’s Life Insurance Resource Page
Life Insurance for Businesses

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Life

Discounts Available