29 Nov How to Analyze Your Need for Life Insurance
Know your life insurance needs.
If you are in the market for life insurance, then you’re probably wondering how much coverage you should buy. The answer to your question lies in a life insurance needs analysis. This takes into account your current assets and expenses to determine how much coverage your family will need if you were to pass away suddenly.
When you’re looking to buy life insurance, don’t choose a policy before you understand the financial needs of your beneficiaries. It’s common for many people new to life insurance to first decide on the product they want, whether it’s term or whole life, before they consider how much protection they need. A better way to know what your family will need is to work backward – assess your financial situation and then find a policy to suit your needs.
Analyze Current and Future Expenses
A good life insurance needs analysis will always look at immediate, ongoing, and future expenses. Consider he immediate expenses your family would have to figure out first, such as medical bills and the cost of a funeral. Then look at ongoing expenses such as your mortgage and outstanding debt. Next, consider ongoing future expenses like sending your child to college.
Many people want to leave enough life insurance coverage for their spouse to pay off the mortgage easily. They also may want to ensure that the policy can help their spouse to retire on time as planned. There are many variables when considering a life insurance policy, which is why it pays to work with a trusted advisor. He or she can help you map out your finances as well as understand your family’s needs now and in the future.
Not convinced you need? Check out a few good reasons to buy life insurance. A comprehensive life insurance plan can protect your family and wallet. If you need help securing a life insurance policy is best for you and your family’s needs, get in touch with industry professionals. Contact Kevin or Marci to get started on securing the right life insurance today!