I’ve often heard other insurance professionals say, “People buy life insurance because of love.” Life insurance helps you to ensure that the financial needs of your family are met in the event of your death. This gives you peace of mind, since you’ll know your family will be secure in the future.So, to answer the question, you need a life insurance policy if your loved ones depend on your income or stand to inherit a financial burden in the event of your death.The money your dependents will receive, “the death benefit,” can help pay essential day-to-day expenses, such as mortgage and medical bills, and help your family reach longer-term goals such as your children’s college education. Plus, life insurance can help ensure that your loved ones are not burdened with debt or forced to sell assets to pay outstanding bills or taxes.
Okay, so you’ve decided you do need life insurance and you’re now asking: “How much life insurance do I need?” This depends on a few factors. Generally, the rule of thumb is 7 times your salary; however, as life changes, your insurance needs might, too. It’s a good idea to reassess your needs annually to make sure you have enough to properly protect your family.Beyond protection, life insurance can be the cornerstone of your family’s financial security by providing savings and wealth transfer opportunities. In fact, the very first step in selecting life insurance is to decide how you want the insurance to work for your family.If you have more questions, I can help you determine the amount of protection you may need and the type of insurance that’s right for you.