Basic Principles of Life Insurance Unchanged by Recent Events Newsweek (10/15/01) Vol. 138, No. 16 p.68; Quinn, Jane Bryant
In the aftermath of last month's terrorist attacks, Newsweek's Jane Bryant Quinn reviews some basic principles people should remember about life insurance coverage. Quinn says that parents of more than one child should carry policies worth seven times the family's income, and that two-income couples should divide the coverage based on the percentage of the family's income each individual earns. For example, if one person earns 60 percent of the income, then that person should carry 60 percent of the insurance. Quotesmith.com's Robert Bland adds that term insurance for healthy people who do not smoke is the cheapest it has ever been, with premiums falling 6 percent to 8 percent in the last six months.