A new study by the Million Dollar Round Table, in conjunction with Harris Poll, finds that many people in the United States, even those considered financially successful, do not account for unexpected risks during financial planning. In fact, about one half of Americans (47%) say that, if they were to lose their primary source of income tomorrow, they only could maintain their current lifestyle for three months or less.
Most Americans (61%) say that their family would assume debt if they passed away tomorrow, with 38% of U.S. adults saying that the debt would be $10,000 or more. Additionally, only one half of Americans have life insurance. Of those who have dependents, 47% say those dependents would run out of money without their personal income in two years or less if they should pass away tomorrow.
"While these families with a stead 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, CLU, ChFC, MDRT President.
On average, Americans say their household has two sources of income, with 40% having income of $74,000 a year 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," Mr. Hanna said. "A financial professional can help identify potential risks and work with you to set up a plan that protects your family from these pitfalls."