QUESTION: Is there a general level of insurance you would recommend? I feel pretty secure in what I have saved/am saving for the future but I don't really know how I should be protecting myself from unexpected events.
ANSWER: There really isn’t a “set rule” for how much life insurance you should have. Your income, your debt, the number of dependents you provide for, estate taxes, and where you are in life, etc. all play important factors. Additionally, serious illness or injury can harm more than just your health. It can have an impact on your ability to work and meet your family’s living expenses. Disability insurance, for example, pays your living expenses while you are unable to work. It offers paycheck protection providing cash directly to you for spending on mortgage, groceries, utilities, or whatever else you choose.
It’s important to examine how much future income your family needs to live the lifestyle they are accustomed to and to satisfy future expenses such as college, mortgages, and loans. A newly married couple with children and a new house (and mortgage) will need much more life insurance than a single 45-year-old, with no dependents, no debt, and no estate.
NEED MORE ADVICE?
August 22, 2017