Planning Ahead with Life Insurance Protects Your Family’s Future
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I always say, “Life insurance isn’t for the people who die; it’s for the people who are left behind.” According to research by the Life Insurance Marketing and Research Association, 35% of households would face financial difficulty within one month after a primary wage earner passes away. Life insurance can help a family continue their current lifestyle.
How much life insurance do you need?
Every situation is different, but several factors impact that answer, including:
- The number of children you have
- Your mortgage
- Your income
- Outstanding debts other than your mortgage
- Future education costs for your children
- Costs of final expenses
How do you identify your personal life insurance needs?
COUNTRY Financial® offers an online life insurance calculator that takes all the above into account and helps determine how much you may need. Once you complete the calculator, an experienced insurance agent can help you determine which type of protection is right for you and how much you need.
Do both spouses need life insurance?
Life insurance usually only covers one person, but think about the contributions both spouses make to the family and what you would be missing financially if that person were no longer there. While most people are quick to call out lost income from a spouse working outside the home, they do not recognize the contributions of parents who stay home to care for children and run the household. As a result, they mistakenly think those stay-at-home parents don’t need life insurance. However, if they were to die, the surviving spouse would incur costs to care for children and take care of the home.
See more: Four Ways to Save Money on Car Insurance
Is employer-provided life insurance enough?
In our industry, we often hear that a person has life insurance through work and does not need his or her own policy. While group life insurance policies are a great employee benefit, they are typically only active while you’re employed with that company. So, if you leave the company or retire, you may no longer have life insurance coverage.
Also consider that employee benefits, like group life insurance, can be eliminated or reduced. I always ask my clients, “What if you are in between jobs, or your workplace changes their benefit package?” You do not want to have a time of no coverage, or inadequate coverage, in the case of the unforeseen time you may need it the most.
How do you choose the right life insurance policy?
Thinking about life insurance can seem overwhelming. Talk with an insurance professional about your needs and goals for the future to choose the right type of coverage at a cost that works for your budget.
See more: How to Plan Ahead and Avoid Running Out of Money in Retirement
About the Author: Paula Simmons is a COUNTRY Financial Insurance Agent in Edwardsville. She can be reached at (618) 659-9000.
