Do I really need life insurance?
If any of the following situations apply to you, you
need life insurance:
- Are you married?
- Do you have children or are you expecting to?
- Do you financially support an elderly parent or have debt and/or a mortgage?
The loss of a loved one is hard enough emotionally
without having it compounded by financial worries
from the loss of an income. Life insurance can help
your loved ones meet important financial needs
beyond funeral costs including daily living expenses,
medical bills, mortgage payments and college tuition.
The easiest way to approach life insurance is with a
basic approach – term life insurance.
Term Insurance
If any of the three situations above applied to you,
term life insurance may be an affordable and effective
way to provide adequate financial coverage for your
family in the event of an untimely passing of a loved
one. You choose a specific period of time (a “term”)
that would adequately cover your insurance needs
(10 years, 20 years or 30 years for example) and the
policy will pay a death benefit to your beneficiary if
you die during that term. You can also elect to renew
your policy. What’s more, your beneficiary receives the
life insurance proceeds free of federal income tax.
How much life coverage do I need?
Everyone’s situation is different. When determining your own needs
– consider this:
Besides the daily living expenses your dependents will need, you also have to take into account funeral costs, lawyer
fees, taxes and other miscellaneous debts that may arise due to an untimely passing of a loved one. The average life
insurance coverage needed is $459,000 but the average amount owned is only $126,000.