life insurance

Determining the right amount of life insurance can be overwhelming.  Consider the following questions to help

Has your income changed?

When you first bought life insurance, you were most likely younger and making less money.  Now that you’re older, you are most likely earning more, so the same general rule of thumb (to have10  times your income in life insurance) may not make sense.

Whether you are the main source of income or a stay-at-home parent, there are things to consider in terms of the cost to replace the income or cover the new expenses to replace care you provide.  We can help you think through what it would cost per year and how many years you might need it.

How old are your kids?

If you have young children, your life insurance needs look very different than if you have teenagers. Think about how long they will need income.  The younger your children, the more coverage you need.

What do you still owe?  

What are the expenses in your life:  mortgage, car payments, big credit card balances, private student loans?

Debt doesn’t disappear when you are gone, and your spouse will have less income with which to make payments. Some debt may be forgiven,  but if a spouse was a joint account holder, they’ll be liable. Ensure you have enough life insurance to pay off major debts, or at least to make it possible to make payments for many years.

Do you plan to cover college?

Most children today attend college, and now more than ever it is a major financial concern. In addition to buying coverage at a multiple of your income, you may consider adding extra for anticipated college costs. 

Consider bumping up your life insurance by the amount you feel each child might need in their college fund.   

In addition, we work with insurance carriers with fantastic programs to earn money to be used towards college just by enrolling in their insurance plan.  CLICK HERE to learn more