For many, their first life insurance policy comes through their benefits package at work. Typically, it costs next to nothing and provides enough death benefit to cover one year’s salary. It’s a good start, but hardly enough to pay off the mortgage or cover a child’s college tuition. We can always discuss your life insurance needs, but in the meantime...
Ask Yourself These Important Questions:
Is the death benefit on my current insurance enough to cover my family?
That means all financial obligations, current and future. If you have children, do you expect them to go to college? The average tuition cost for a public four-year college is about $28,000 per year, or more than $110,000 total per child (not accounting for future inflation). Next, what about your home? Mortgage debt isn’t forgiven when you pass away. Will your family be able to afford to keep the house without your income?
What if I leave my job?
Some employer-sponsored life insurance plans terminate if you’re no longer with your employer. That might not be a problem if you’re heading to a new job with similar coverage right away. But if you aren’t sure what your next move is — or you lost your job unexpectedly — you may have to deal with gaps in your coverage. Something more permanent through a secondary plan could provide more lasting peace of mind.
What if my health changes?
It’s easy to find a policy at a great rate when you’re young and healthy because a young, healthy person represents less risk to the insurance company. So what happens if/when you get seriously or chronically sick? You’re likely to have a much harder time finding an insurance company that will offer a policy at a reasonable rate.
Life insurance can be a simple way to find peace of mind for both you and your family. Give us a call (or an email) if you have questions about it – we’re here to help.
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Is My Life Insurance Covering Enough?
September 21, 2021