Does Your Life Insurance Actually Cover Your Needs?
Do you have a mortgage, a spouse, children or other family members who depend on you and your income? No matter what stage of life you’re in, it’s important to consider several factors, such as those below, to help determine if your life insurance covers all of your unique needs.
- Carry coverage that’s at least 7 to 10 times your annual income.
This rule of thumb is a good way to estimate the amount of coverage you’ll need to help ensure your family can maintain their standard of living without your income.
- Match your term coverage to the term of the mortgage.
If you have a 30-year mortgage, purchasing a 30-year term policy that’s equal to or more than your mortgage amount can help your loved ones to help pay for this expense if the unexpected happens.
- Consider costs for childcare, education and household needs.
Having the right amount of coverage can help your family to be able to stay in their home, pay for childcare and household needs or even help save for college expenses.
- Support any family members who may depend on you.
Whether you are taking care of aging parents or adult children, it’s important to have coverage in place to help protect them.
- Include coverage for final expenses.
Funerals and final expenses can be costly – having coverage in place can help alleviate the financial impact on your family.
Everyone has different needs to consider when determining the right amount of life insurance.
The list above is not meant to be exhaustive, as everyone has different needs to consider when determining the right amount of life insurance.