Planning now for your and your family’s future can help protect you and keep them financially secure if you’re not there to take care of them.
If you’re not sure if life insurance is right for you, ask yourself:
- If I die tomorrow, how would my family be impacted financially?
- Could my family afford our home?
- Would my family have money to manage daily living costs and be able to cover my final expenses?
- Without protection, will I leave my family in debt or financial risk?
If you have loved ones who need the financial support you provide and will provide in the future, consider life insurance to make sure they will be adequately cared for and protected. When determining how much coverage you need, ask yourself how much would your loved ones need to maintain the financial lifestyle they would have if you were still living.
One rule of thumb is to have a policy that would pay six to eight times your pretax income if you die. But, many find they need more than that. If you have young children and want them to be able to afford college educations, you may want more. If you are older and have already accumulated substantial wealth, you may be able to decrease your life insurance as you consider it a component of your total estate plan. A more detailed determination of the amount of life insurance you need should take into account the following items:
- Your family's cost of living
- Income from earnings of the surviving spouse
- Benefits from Social Security
- Investments and additional income
- Life expectancies
- Special needs for college, etc.
Even if you have coverage through an employer, it may not be enough. Consider if you were to get sick for an extended period of time. If you used up all of your sick leave and then passed away, you may be left without a death benefit because you technically may not be employed anymore. Having additional life insurance helps ensure your family isn’t put in a difficult position such as this.
Talk with a Starion Insurance agent for help making an accurate estimate. When in doubt, it is likely better to err on the high side rather than leaving your family under protected.