Life insurance is one of those topics no one ever wants to talk about. Dealing with one’s mortality no matter the age is never a pleasant topic to discuss. Moreover, the average family likely cannot afford yet another monthly expenditure.
Many know they need coverage but it’s one of those things they tell themselves they will deal with next year, and then next year becomes even later. Worst yet the price only gets more and more expensive as time passes. If the inevitable health condition occurs, coverage becomes cost-prohibitive – leaving your loved ones without protection. When is the time to evaluate your insurance need? Today.
How Much Life Insurance Is Right For Me?
What’s the hardest part of buying life insurance? For most people, it’s trying to figure out exactly how much you should have. It doesn’t make financial sense to spend money on protection you don’t need, but you still need to plan for the future and reevaluate continuously as life changes occur. But you still have to make sure your family will always be comfortable – even if the worst happens.
On one hand, some financial advisors recommend multiplying your yearly income by 7. On the other hand, they recommend purchasing just enough coverage to protect your income during your working years, and put the savings into retirement investments.
So what’s right for you? Before you decide to buy a policy, ask yourself these questions about your current – and future – financial needs. If you already have bought a policy, you need to make sure this is properly reviewed every few years.
Do you have any short-term financial needs?
You can get this figure by first adding up your short-term debts, like credit cards and car loans. Next, add in the amount you would need to cover emergency expenses like unexpected hospital visits or home repairs.
Do you have any long-term debts?
Long-term debts include your mortgage, any student loans, or your children’s expected tuition costs. You can use today’s college prices to give you an idea of how much money your children will need in a few years.
How much would it cost to maintain your family’s current lifestyle?
Add up how much it costs to run your household and care for your family for one year. That includes your household and food bills, transportation costs, and childcare. Don’t forget to add in “standard of living” expenses like clothing and travel expenses. Once you’ve added up one year of costs, multiply that by the total years you expect to be your family’s financial provider.
I know I need coverage, what is the next step?
Complete the life insurance worksheet and send to me today or complete the Get a Free Quote form on the homepage. We will come up with a customized plan that works best for you!
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