Robin SmithAmerica’s got personal debt and cash flow problems.
In a March 6 Bloomberg TV segment, the CEO of Assurant – a specialty insurance company that offers protection agreements for items such as smartphones and other products – made a comment that revealed a real issue in America. Alan Colberg, speaking to the increased demand for smartphone insurance to deal with mishaps and damage to our ever-important hand-held devices, stated, “The reality is, half of Americans can’t afford to write a $500 check.”
Colberg, stressing the rising costs of some electronics, noted that it was becoming less expensive for smartphone users to purchase insurance coverage rather than risk the full price of replacing a $600 device if stolen or damaged. While the insurance company’s leader is correct about having a safety net for an emergency, his remarks spurred a subsequent conversation.
Is it true that most Americans couldn’t cover an unplanned $500 expense?
Cited in a January Bankrate survey of 1,000 respondents, 57 percent said that they would have insufficient funds to cover any hypothetical $500 emergency. However, good news! This is an improvement from the 63 percent who declared financial constraints in the 2016 Bankrate annual fiscal checkup.