- Life insurance is the most com- monly offered employee benefit, after health insurance. True or false?
ANSWER: True. According to the Bureau of Labor Statistics, 57 percent of all workers in private industry have access to life insurance benefits. Seventy percent of private industry workers have access to health insurance benefits (2013 figures).
- One-third of American consumers believe they do not have enough life insurance. True or false?
ANSWER: True. The 2013 Insurance Barometer Study by LIMRA found that one-third of consumers think they do not have enough life insurance.
- The percentage of Americans who actually lack adequate life insurance coverage is much higher. True or false?
ANSWER: True. If you consider life insurance as a way to replace a salary earner’s income, then 98 percent of Americans with spouses, partners or dependents do not have enough. A Nationwide Financial survey found that the average consumer holds about $300,000 in life insurance coverage. To replace a lifetime of earnings, the average consumer needs $1.5 million in coverage, which leaves a gap of about $1.2 million.
- Consumers are willing to pay about $99 per month, or about $1,200 per year, to close this coverage gap. True or false?
ANSWER: True. According to the Nationwide Financial survey. For this amount, a healthy 35-year-old can more than bridge the coverage gap. This amount buys a healthy 35-year-old man about $2.3 million in term life insurance coverage, while a healthy 35-year-old woman could buy more than $2.6 million.
- My employees probably already have a life insurance agent, so they won’t be interested in voluntary life benefits. True or false?
ANSWER: False. The Nationwide survey found that just 35 percent of consumers worked with an insurance agent or financial advisor to determine how much life insurance coverage they need.
- Employees like buying benefits through the workplace. True or false?
ANSWER: True. A recent Eastbridge study found that 76 percent of employees preferred using payroll deduction to pay for benefits they contributed to or paid 100 percent for. Only 14 percent preferred to use a credit card or bank account automatic withdrawal.