Genworth VP: “Consumers often believe life insurance costs nearly three times its actual price…”

The full quote is from Genworth VP Brian Bulakites is:

Consumers often believe life insurance costs nearly three times its actual price, and this is a major contributor to the large coverage gap we’re seeing in these four groups

These 4 underinsured groups according to Genworth are:

• Large families
• Unmarried parents
• Women
• Those with certain common health conditions

I speak with people in these categories on a daily basis and the most common objections to discussing life coverage are:

1. I have it through my job
2. I’m already covered

There are a few items to think about here…

1. Does your employer have ANY earthly idea how much life coverage is adequate for your situation?
2. If you are already covered, do you have an adequate amount of coverage and could you possibly obtain the same coverage at a lower price?

Some additional comments regarding employer sponsored life insurance:

1. It ends when you leave your job. Yes, you typically have an option to keep the same amount in-force but it is expensive as you are offered permanent insurance instead of the term product you had as an employee
2. The most life insurance I’ve seen offered to non-executive employees is twice their annual salary and 1x the annual salary or no life coverage at all is more common. Twice your annual salary, in almost all cases, is simply not adequate.
3. If your health change substantially during the term of your employment, the  ability to obtain life insurance coverage outside of your employer can become very expensive or not be available at all.
4. The best way to treat employer sponsored life insurance coverage is as the “icing on the cake”. You need to own the main policy and anything your employer should be considered a welcome addition to the coverage you have in place.

If you would like to investigate life insurance options, please contact Chris Adams at 303.495.3045 or toll free at 877.694.5164.