Two-Thirds of Parents Are Making This Big Financial Mistake
More than a third of Americans with young children don’t have any life insurance, and another third have policies with payouts of less than $100,000, according to a new analysis by Bankrate.com
The survey found that 42 percent of all Americans haven’t purchased life insurance, and about half of those with insurance have policies worth $100,000 or less, including 25 percent of those with a household income over $75,000.
Of course not everyone needs life insurance, but people who have family members depending on them financially should have a policy. The amount you need varies, depending on your future financial obligations, outstanding debts, and current assets.
Related: How to Calculate Your Life Insurance in 3 Easy Steps
Part of the reason for inadequate coverage could be that people underestimate the benefits they’re receiving from work (which don’t roll over from job to job), or they’re failing to update their policy after major life changes like the birth of a child or the purchase of a home.
Another factor: They’re misinformed about the price of life insurance. Eight in 10 consumers have incorrect ideas about the price of life insurance, with millennials overestimating the cost by 213 percent and Gen Xers overestimating it by 119 percent, according insurer trade organization LIMRA.
In addition to your age and health, the price of life insurance could be impacted by your credit history, driving record, and lifestyle.
The LIMRA study found that 30 percent of Americans think they need more life insurance, but more than half said it was unlikely that they’d purchase a policy in the next year.
Budget ‘Chaos’ Threatens Army Reset: Retired General
One thing is standing in the way of a major ongoing effort to reset the U.S. Army, writes Carter Ham, a retired four-star general who’s now president and CEO of the Association of the U.S. Army, at Defense One. “The problem is the Washington, D.C., budget quagmire.”
The issue is more than just a matter of funding levels. “What hurts more is the erratic, unreliable and downright harmful federal budget process,” which has forced the Army to plan based on stopgap “continuing resolutions” instead of approved budgets for nine straight fiscal years. “A slowdown in combat-related training, production delays in new weapons, and a postponement of increases in Army troop levels are among the immediate impacts of operating under this ill-named continuing resolution. It’s not continuous and it certainly doesn’t display resolve.”
Pentagon Pushes for Faster F-35 Cost Cuts
The Pentagon has taken over cost-cutting efforts for the F-35 program, which has been plagued by years of cost overruns, production delays and technical problems. The Defense Department rejected a cost-saving plan proposed by contractors including principal manufacturer Lockheed Martin as being too slow to produce substantial savings. Instead, it gave Lockheed a $60 million contract “to pursue further efficiency measures, with more oversight of how the money was spent,” The Wall Street Journal’s Doug Cameron reports. F-35 program leaders “say they want more of the cost-saving effort directed at smaller suppliers that haven’t been pressured enough.” The Pentagon plans to cut the price of the F-35A model used by the Air Force from a recent $94.6 million each to around $80 million by 2020. Overall, the price of developing the F-35 has climbed above $400 billion, with the total program cost now projected at $1.53 trillion. (Wall Street Journal, CNBC)
Chart of the Day - October 6, 2017
Financial performance for insurers in the individual Obamacare markets is improving, driven by higher premiums and slower growth in claims. This suggests that the market is stabilizing. (Kaiser Family Foundation)
Quote of the Day - October 5, 2017
"The train's left the station, and if you're a budget hawk, you were left at the station." -- Rep. Mark Sanford, R-S.C.