How Much Life Insurance Do You Really Need?

How Much Life Insurance Do You Really Need?

There's no doubt about it: Everyone needs a life insurance policy. Yes, even young healthy people, with no dependents, need at least a basic policy that will cover final expenses. But as we all know, our coverage needs increase dramatically as our lives become more complicated. You want to ensure that your dependents would be financially safe and comfortable in the event that something happens to you, and you might also have other goals that you want to accomplish with a life insurance policy.

So, as we grow older, earn more money, own more property, and have more dependents... Our life insurance needs also grow. How much coverage do you really need, at this point? Even if you purchased a policy just a few years ago, your needs might have changed in the meantime.

That's why a needs analysis has become so important. We use a formula to determine how much life insurance, and which type of policy, will best protect your family and help you accomplish your goals. Then, we repeat this process every few years, to ensure that you maintain the amount of coverage that is right for you.

Your life insurance policy needs to address a variety of needs, such as:

  • Burial and other final expenses
  • Unpaid debts – mortgage, credit cards, loans, and so on
  • Loss of your income – how much do your dependents need to maintain their lifestyles?
  • Children – if you have younger children, your surviving spouse might need help caring for them
  • College tuition – you might wish to ensure that your children can achieve a higher education
  • Legacy – you might hope to leave money to children, grandchildren, or even a special charity
  • Other financial goals – there are many more objectives we can accomplish with the right insurance policy

These are just some of the main points that your needs analysis should address. Depending upon your unique situation, you might have other goals that we should discuss.

It can be tempting to just sign up for the first policy that sounds “right” or “large enough”, but without a need analysis it's difficult to achieve true peace of mind. Plus, life insurance policies can vary greatly, offering extra features that can benefit you in a variety of situations. Call us to schedule an appointment, and we'll help you assess your true needs and then match those with the right policy.  


要查看或添加评论,请登录

Vicki Gunvalson的更多文章

  • What happens to your debt after you pass away?

    What happens to your debt after you pass away?

    No one hopes to carry significant debts into retirement, and you particularly don’t wish to leave behind large debts…

    3 条评论
  • 4 Important Conversations to Have Before You Retire

    4 Important Conversations to Have Before You Retire

    As you plan for retirement and enjoy the countdown to your final day at work, regular conversations about your future…

  • Quick Income Ideas

    Quick Income Ideas

    Looking to Downsize? Combine Your Income Opportunity with Decluttering! Downsizing doesn’t just mean reducing your…

    2 条评论
  • What To Do With Your 401(k) When You Change Jobs

    What To Do With Your 401(k) When You Change Jobs

    Your grandparents might have worked for the same company for thirty years, retiring with a comfortable pension. Today…

  • 5 Steps to a 401(k) rollover

    5 Steps to a 401(k) rollover

    Whether you’re leaving your job, or on the verge of retirement, you might be wondering whether a 401(k) rollover is…

  • Generational Differences in Handling Money

    Generational Differences in Handling Money

    The baby boom generation is the demographic engine that has driven U.S.

    1 条评论
  • Where Does the Time Go?

    Where Does the Time Go?

    Americans are so busy that they often have a hard time balancing demands for work and their personal lives. In fact…

    1 条评论
  • The Upside to Universal Health Care: Benefits Nobody Talks About

    The Upside to Universal Health Care: Benefits Nobody Talks About

    There’s a growing number of businesses that have kept quiet when it comes to the health care debate. While they may be…

  • Health Care a Hot Topic for 2020

    Health Care a Hot Topic for 2020

    One issue sure to ignite the 2020 election year is the future of health care in America. As Congress resumes its…

  • Generational Differences in Handling Money

    Generational Differences in Handling Money

    The baby boom generation is the demographic engine that has driven U.S.

    1 条评论

社区洞察

其他会员也浏览了