Life insurance policies should vary with needs
While it remains a solid investment in many situations, financial advisors Forbes that consumers shouldn't believe there is one level of life insurance coverage that's right for everyone.
The news source states the people who most need life insurance are younger families with debt or other obligations that would be tough to pay off if they suddenly passed.
"To me your insurance is an aspect of your overall financial plan," Roger Wohlner, a fee-only financial advisor in Illinois, told the source. "Ideally you should look at it annually, or every couple of years, and see if circumstances have changed."
In terms of the amount of coverage needed, the source said some recommendations are for 15 times the person's average income, or enough to cover any debts plus 3.5 times their income.
Despite the interest in life insurance, industry officials say fewer Americans are taking out policies. According to LIMRA, an insurance industry group, just 44 percent of households have individual life insurance.
