How Much Do You Know About Life Insurance?

July 17, 2019

INS-9985-A-820x350-subcategory-desktop

Test your LIFE skills with the quick true-or-false quiz below:

  1. Life insurance is expensive.

    True or False?

  2. People under 50 don't need life insurance.

    True or False?

  3. Driving record and credit history affect what you'll pay for life insurance.

    True or False?

  4. Life insurance through work provides enough coverage to protect your family.

    True or False?

  5. Life insurance is more important than retirement savings or an emergency fund.

    True or False?

How Did You Do?

  1. False - Life insurance is too expensive.

    Most people estimate the cost of coverage at over three times its actual cost. The truth is, a term life insurance policy for a healthy 30-year-old typically costs less than $14 a month.*

  2. False - People under 50 don't need life insurance.

    Studies show more than one-third of all families would feel the financial impact of the loss of a primary wage earner in one month or less.*

  3. True - Driving record and credit history affect what you'll pay for life insurance.

    In addition to age and health, your driving record and credit history could play a role in how much you pay for term life.

  4. False - Life insurance through work provides enough coverage to protect your family.

    Life insurance coverage provided by your employer might be sufficient if you’re single with no dependents, but if you have kids and large financial obligations, it may not be enough. Employer policies rarely cover more than three times an annual salary, while the general recommendation is 10 times your annual salary. (Some cover as little as 6 months’ salary.) Plus, if you change jobs, you can’t take your policy with you.

  5. False - Life insurance is more important than retirement savings or an emergency fund.

    It's important to talk to your financial advisor about how you can incorporate all three into your financial strategy.

Even if you answered all five correctly, life insurance can be confusing and there may be more you need to know. Talk it over with your financial advisor. If you already own a policy, you can review it to ensure it covers what you need. Or, if you want to purchase your first policy, Edward Jones offers options for both term and permanent life insurance that could meet your needs.

Learn more about how much and what type of insurance you might need.

Important Information:

1Source: Life Happens and LIMRA Insurance Barometer Survey, 2018


Edward Jones is a licensed insurance producer in all states and Washington, D.C., through Edward D. Jones & Co., L.P. and in California, New Mexico, and Massachusetts through Edward Jones Insurance Agency of California, L.L.C.; Edward Jones Insurance Agency of New Mexico, L.L.C.; and Edward Jones Insurance Agency of Massachusetts, L.L.C.

Find a Financial Advisor

Find a Financial Advisor

Select a State and then enter a last name

    Are you covered?

    Help protect your family's financial future with life insurance.

    Read more