As your family grows, you’ve no doubt come to the conclusion that it’s time to get life insurance. Not sure how or what you will need? Here are some details to help you answer the question, how much life insurance does a person need?
The amount you need really depends on your situation. If you died tomorrow, how much money would your family require to survive? A recent study found that families with life insurance are significantly more likely to be financially secure than those without life insurance if their primary breadwinner dies unexpectedly. You may not know how much coverage you need or if you both need separate policies. Every situation is unique, but you and your partner may want to both be covered.
In addition to covering burial expenses and replacing lost income, be sure to plan to replace less visible sources of income such as pension contributions and employer-sponsored health insurance. Consider getting a policy to replace the unpaid services that you and your spouse each provide to your family, such as childcare and housework. You may now need to pay for childcare outside of the home and for someone to help with housework if you are now the only breadwinner.
Protecting your family with life insurance is beneficial in many ways.
It can provide valuable benefits such as paying for medical care for critical illness, payment of end-of-life and funeral expenses or leaving money to your family for their future.
There are multiple coverage options each with different benefits. If you’re not sure which life insurance policy to buy, it’s understandable. The key is finding the right policy that fits your needs and your budget.
Term insurance is an affordable option, but once it expires, it is no longer covered. Whole life insurance is more expensive, but it lasts as long as the premium is paid and has cash value. Guaranteed life insurance does not require a medical examination for acceptance, but there is usually a waiting period before some benefits are available.
You can also add riders to your plan, such as Accidental Death, Disability, or Critical Illness. Usually, these features come at an additional cost, but some plans have no cost riders. Often these are “living” benefits that can assist you financially while you are still alive.
The details of these policies are often complicated. It’s best to speak to a professional when inquiring about the best plan for your family.
Contact us if you have any questions about your coverage or need help obtaining your family’s protection. It’s our pleasure to bring peace of mind to families!