This is the fourth and final question in the Money Magazine “Get on track for retirement” series and it’s a nice closer. Did you know that 70% of workers think they have enough for retirement but only 43% have actually done the math to prove it? That’s according to a 2007 Employee Confidence survey by Employee Benefits Research Institute and I wonder how many people aren’t ready for retirement but think they are?
Well, that’s not even the point of this last question, this last question is focused on one thing – insurance. If something bad happens, is it going to wipe out your savings? Do you have life insurance and disability insurance. If you do, wonderful; if you don’t, shame on you.
A term life policy gives you the largest death benefit for the smallest premium – generally, you should get coverage equal to five to 10 times your salary. As for disability insurance, look for a policy that will pay 60% of your salary. Before you shop, though, see if you already have coverage (or the option to get it) through your job.