Test Your Life Insurance Knowledge

How much do you know about life insurance? Take the following quiz to find out:

1. Life insurance is the most commonly offered employee benefit, after health insurance. True or false?

True. According to the Bureau of Labor Statistics, 55 percent of all workers in private industry have access to life insurance benefits (2016 figures).

2. Forty percent of Americans have no life insurance at all. True or false?

True. The 2016 Insurance Barometer Study by LIMRA found that 40 percent of Americans have no life insurance, either through their employer or individually purchased.

3. The percentage of Americans who actually lack adequate life insurance coverage is much higher. True or false?

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.

4. Consumers are willing to pay about $99 per month, or about $1,200 per year, to close this coverage gap. True or false?

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.

5. My employees probably already have a life insurance agent, so they won’t be interested in voluntary life benefits. True or false?

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.

6. Employees like buying benefits through the workplace. True or false?

True. An Eastbridge study found that 76 percent of employees preferred using payroll deduction to pay for benefits they contributed to or paid for in full. Only 14 percent preferred to use a credit card or bank account automatic withdrawal.

USI’s employee benefit advisors (EB) can help you incorporate a life insurance policy for your employees. Reach out to your local USI Northeast EB office to learn more.

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