Many people equate life insurance with tragedy and death. Within truth, life insurance is for the living. Without leave a family stuck minus the resources to maintain their lifestyle--or even maintain their home.
Not so long ago, specialists recommended that families carry a life insurance policy with a death benefit of 10 times their yearly household income. Today, however, in light of rising house prices in many parts of the country, spiraling college or university costs and low interest rates most advisors now recommend up to 20.
Unfortunately, most American families are underinsured. The particular gap between what homes have and what they need is almost $320, 000, based on LIMRA's research Closing the Life Insurance Gap, 2015.
If you want to get a working idea of how much life insurance you may need (or how much more you may need), you can use our quick Life Insurance policy Needs Calculator.
A Cornerstone of Your Financial Program
Life insurance is a cornerstone of your financial plan, for these reasons.
1. That provides income replacement. For most people, their most valuable economical asset is their ability to earn a living. If you have dependents, then you need to consider what would happen to them if they could no more rely on your income. Life insurance coverage can also help supplement retirement income, which can be especially useful if the advantages of your surviving husband or wife or domestic partner will be reduced after your death.
2. It includes outstanding debts and long lasting obligations. Without life insurance, your loved ones must shoulder burial costs, bank card debts, and medical costs not covered by health insurance using out-of-pocket to pay off a mortgage loan, supplement retirement savings, or fund school tuition.
3. It can be used for estate planning. Typically the proceeds of a life insurance policy can be earmarked will not have to liquidate other property to do this.
4. You can use it to support a charity of your choice. For those who have a favorite charity, you can designate some or all of the proceeds from your life insurance to visit this organization.
Remember a real estate agent or advisor can help you determine your life insurance needs and discover something that works within your budget. Minus one, you can check out our Real estate agent Locator.
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