Inadequate life insurance

The average amount of life insurance per breadwinner is $37,000. This is inadequate.

Each breadwinner should aim to have 3 to 5 years of earnings to take care of the needs of the family in the event of premature death. As a guide, they should aim to have a sum of $100,000 in life insurance.

Many people find it costly to insure for $100,000 in an endowment, whole life or dread disease policy. The premium is too high.

The current amount of life insurance probably reflect what they can afford to spend for a traditional life policy.

I suggest that they should take a personal accident or term life policy to make up the difference. The premium is quite low, as it is intended solely for protection.