|Are Americans insurance-savvy?
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results revealed that different age groups have different insurance priorities.
Folks older than 50 were more likely to cut life insurance out, while those younger
than 50 were more likely to drop disability first. "This reversal is probably
explained by the fact that those over 50 are not likely to have young children
dependents, which is a primary motivator for life insurance. They are also more
aware of the importance of a continued source of income to fund retirement with
little remaining time to do so," says Professor Graves.
|Insurance priorities by age |
People with annual incomes higher than
$30,000 were more likely to drop disability insurance. Graves says this is most
likely because they are putting a higher priority on life insurance if they have
Reactions to unusual
With the prevalence of identity theft in the news, it may
come as no surprise that 63 percent of Americans believe ID theft insurance to
be a savvy investment.
Unfortunately, people may be paying
for coverage they already have. "Many people who buy identity theft
insurance do not realize that they have coverage through their homeowners' policy,"
"The big exposure to loss comes in two
places: damage to your credit rating (which insurance cannot remedy directly)
and costs associated with cleaning up the mess the identity thief has created,"
he explains. "But on the latter, the FTC reports that the median amount paid
was $259 (only $9 more than a $250 deductible). In addition, 84 percent of the
amounts paid were less than $1,000 and only 4 percent exceeded $5,000. Granted,
this does not account for lost wages. Lost wages and legal fees would be the main
reasons for buying this type of insurance. Otherwise, time and money would be
better spent in securing one's identity from identity theft."