We hate facing our own mortality, but most agree our families are our most precious asset. That’s why it is worth taking a short amount of time to review whether those you care most about would be adequately protected in the event of your unexpected death.
How can you be sure your family will have what they need to survive if you are no longer there to provide for them?
You could save and invest for many years but what if you suddenly were not around before the investment was worth enough? A good life insurance policy would take away the worry while waiting for your investments to accumulate. If you don’t have life insurance, now might be a good time to consider it. If you do have coverage, double check to make you have enough to adequately protect your family. Be aware the small amount of life insurance through your employee benefit package might not be enough. Many companies provide $50,000 to $100,000 of employee life insurance. That won’t go far. And you’ll lose this benefit if you lose your job, so it is always good to have a private policy you can keep regardless of your employment situation.
Who needs life insurance?
Anyone who is providing financial support or care for family members or has a current debt such as a mortgage that would need to be paid off in order for surviving family members to continue to live. The need is especially great for younger couples who will need to support children and/or make large mortgage payments for many years. Couples without children would also want to consider life insurance if they are paying on a home mortgage. A two-income family often could not afford the payments on their own. A family tragedy shouldn’t be compounded by getting your house foreclosed on. Life insurance can easily take away this concern.
A rule of thumb is to multiply your current salary by 10 so your beneficiaries would have 10 years’ worth of security. To be more accurate you can calculate what it would take for your survivors to maintain their current lifestyle over the desired number of years. If you want your mortgage to be paid off or have big expenses like your child’s college education, be sure to add on for those items too. Stay-at-home spouses have economic value and should also be insured for the amount it would cost to hire child care.
Buying life insurance isn’t fun, but we are here to make it as easy as possible for you to sort through the information to find an affordable plan will work best for your specific situation.