Americans in their 20s and 30s don't have fundamental financial knowledge, according to a new survey,"Life and Disability Insurance: What 20- and 30-Somethings Think," by LearnVest.com and The Guardian Life Insurance Co. of America.

"The results of this study clearly underscore the need for practical, real-life financial literacy and empowerment," says Deanna Mulligan, CEO of Guardian. "We need to address this earlier in our schools and more often throughout people's lifetimes. There is a serious gap between the expectations of this audience and the reality they face, particularly when it comes to insurance. By filling these information gaps, we can empower young adults to take control of their financial future and reduce the possibility of placing undue financial burden on their loved ones."

The survey also finds 60 percent of respondents fail to understand the difference between term life insurance and permanent life insurance while 30 percent of respondents do not know what type of insurance they own. Another 19 percent of respondents are unaware of how their policies pay out.