Life insurance is not a fun topic to think or talk about. However, it is a necessary one. Do you have loved ones that depend on you financially? Do you have college loans or a mortgage that you do not want you family members to have to take over? Life insurance is about protecting those you love in the event that something happens to you. Your designated beneficiary would collect a financial benefit upon your death.
Life insurance can be confusing, but that’s where we come in. There are numerous types of insurance. Term, Whole Life, Universal Life. Not all plans may be the best fit for your needs. When looking at life insurance you want to make sure to get the best rate but also the best fit for your family’s needs.
Click here to learn more about the types of life insurance.
Once you determine that you need it and what type you want, how to you determine the amount of life insurance you need?
How Much To Buy?
A few common factors to keep in mind when determining the amount of life insurance you need are:
- What debts do you have?
- What is your income?
- Do you want to pay for a child or children’s college education?
- What expenses will continue even after you are gone?
Many people decide based on an income replacement calculation, between 5 and 10 times the amount of your current income. Think about your personal circumstances. Is your income the sole income for your household? Are there other expenses, such as college tuition, that may arise in the future? Don’t forget to include potential medical and funeral costs. One goal of life insurance is to ensure your family does not get stuck with bills, debts or expenses that they cannot afford.
Click here for a life insurance calculator.
If you have people that depend on you for financial support, it’s important to make an educated decision about life insurance options. Contact your agent today to discuss life insurance and your family’s needs.