Nearly half of Americans say they could only maintain their current lifestyle for three months or less if they were to lose their primary source of income, says a new survey commissioned by the Million Dollar Round Table (MDRT).
Sixty one per cent of respondents said their families would have to assume the debt if they passed away tomorrow, and 38 per cent said this debt would be of $10,000 or more. The survey also found that only half of Americans had life insurance.
Dependents would run out of money
Forty-seven per cent of Americans say that without their income their dependents would run out of money in two years or less should they pass away tomorrow.
“While these families with a steady source of income may seem prepared, they are jeopardizing it all by not having the right protection to ensure future financial security for themselves and their families,” said Mark J. Hanna, MDRT president.
In addition, five per cent of Americans are unemployed or unable to work due to disability, however, only 20 per cent of Americans have disability insurance of any kind. Among those with insurance, only 39 per cent say their plan would be enough to cover their long term care if they had an accident.
On average, Americans say their household has two sources of income, with 40 per cent having income of $74,000 or more. “It’s not just lower income Americans who are vulnerable to financial strain in the event of a life-altering incident; families considered financially successful are also at risk,” underlined Hanna. He recommends that families work with a financial professional who can help identify potential risks and work to set up a plan to protect them.