According to a recent study, Americans are more concerned with being
able to pay their mortgage and other bills today than they were a year ago.
Now, more than ever, it is crucial that consumers protect their financial security.1
Life insurance is one tool that can provide this kind of protection. The
fundamental question is: what is the “right” amount
of life insurance?2
For anyone weary of
writing checks for life insurance premiums, retirement used to signify relief
for some. With the mortgage paid, the kids on their own, and Medicare and
Social Security on the way, common sense suggested you could safely let your
insurance expire. Now, some retirees no longer have the flexibility to
discontinue their life insurance. Life
expectancies are rising3, and the expenses that the death
benefits were earmarked for are hanging around longer. Your spouse may need an
extra financial safety net after you die. And
what if your children aren't self-sufficient?4
Here are some important
questions to consider:
- How much of the family income do I provide?
- If I were to die early, how would my survivors
manage?
- Does anyone besides my spouse and children
depend on me financially (such as a parent, grandparent, brother or sister)?
- Do I have children or grandchildren for whom
I’d like to set aside money to help with education expenses?
- How will my family pay final expenses and
repay any outstanding debts?
- Do I have family members or organizations to
which I would like to leave money?
- Will there be estate taxes to pay after my
death?
- How
will inflation affect future needs?5
With so many factors to be
considered when determining the “right” amount of life insurance, we highly
recommend that you discuss this important topic with your financial planner.
Please contact us
today to discuss your life insurance needs.
1 "2012
Life Insurance Awareness Month" Life Insurance and Marketing Research
Association; http://www.limra.com/liam/
2 "How
much life insurance do you need?" Insure.com, May 8, 2010; http://www.insure.com/articles/lifeinsurance/coverage.html
3 "U.S.
Life Expectancy at All-Time High” World Climate Report, March 17, 2011; http://www.worldclimatereport.com/index.php/2011/03/17/us-life-expectancy-at-all-time-high/
4 "How
Much Life Insurance Do You Need?" Kiplinger, August 15, 2010; http://www.kiplinger.com/magazine/archives/how-much-life-insurance-do-you-need.html
5 "Life
Insurance Buyer’s Guide" National Association of Insurance Commissioners, Revised
2007; http://www.naic.org/documents/consumer_guide_life.pdf
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