Some people equate life insurance with tragedy and death. Truly, life insurance is for life. Without it, the sudden disappearance of a key breadwinner could leave a family stranded without the resources to maintain their lifestyle or even keep their homes.
There are not that long, professionals have recommended that families carry a life insurance policy with a death benefit of 10 times their annual household income. Today, however, in light of the rise in property prices in many parts of the country, escalating college costs and low interest rates most counselors now recommend up to 20 times your family income.
Unfortunately, most American families are underinsured. The gap between what households have and what they need is almost $ 320,000, according to the study by LIMRA Bridging the gap life insurance, 2015.
If you want an idea working how much life insurance you may need (or how much you may need), you can use our fast life insurance needs calculator.
A cornerstone of your financial plan
Life insurance is a cornerstone of your financial plan, for these reasons.
1. It provides a replacement income. For most people, their most valuable economic asset is their ability to earn a living. If you have dependents, then you must consider what would happen if they could not rely on your income. A life insurance policy can also help supplement retirement income, which can be especially useful if the benefits of your surviving spouse or domestic partner will be reduced after your death.
2. It covers long-term debts and obligations. Without life insurance, your family must bear the funeral expenses, credit card debts and medical expenses not covered by health insurance using money out of pocket. the death benefit of the policy could also be used to pay off a mortgage, supplement retirement savings, or a tuition fund college.
3. It can be used for estate planning. The proceeds of a life insurance policy can be assigned to pay estate taxes so that your heirs will not have to liquidate other assets to do so.
4. You can use it to support a charity of your choice. If you have a favorite charity, you can designate a portion or all of the proceeds of your life insurance to go to this organization.
Remember an agent or advisor can help you determine your life insurance needs and find something that works within your budget. If you do not have it, you can consult our agent locator.
0 Komentar