If you’re looking to save more money for the big life event, it may not be the best time to start saving, according to a study from investment bank Goldman Sachs.
The study, which was released Wednesday, found that many people may be tempted to buy more insurance as they prepare for a major life event.
While the research was conducted on a representative sample of more than 7,000 Americans, Goldman Sachs did not look at the entire population.
Still, the report indicates that some individuals are taking a risk and potentially buying too much coverage.
The findings suggest that people are more likely to invest their own money into buying insurance, rather than just paying a higher premium on their own policy.
Goldman Sachs analysts say they have seen a sharp rise in the number of people making their first big life expense payments, and that they are concerned about the increased volatility in the markets.
“The trend we are seeing now is people making large payments for life insurance,” said James Hahn, vice president of research and analytics at Goldman Sachs, in an interview with Bloomberg.
“There is a growing concern that some insurers will default on the large life event payments and they could be worth millions of dollars in the long run.”
For the most part, the average person buys at least one policy.
The average person pays $5,300 a year on their insurance, according a report from the Insurance Institute for Highway Safety (IIHS).
And if you add in the cost of a deductible and premium, the typical insurance premium costs about $2,400 a year, according the IIHS.
The report found that about 20% of Americans say they would have to increase their insurance premiums to cover their major life expenses.
“While many Americans will make major life insurance payments, it’s important to note that many insurers are already underwriting policies for the large events and not taking a conservative approach to policy design,” said Ben Smith, director of research for the IIHHS.
“We believe the best way to manage risk for the most benefit to the individuals and families who are likely to pay out of pocket is to have policies that can pay for their significant life events.”