How Much Life Insurance Do You Really Need?
When it comes to life insurance, many people struggle to determine how much they actually need. Guessing at the answer can result in electing too much, too little, or the wrong policy or coverage for your needs, which can have costly consequences. Even if you have an existing policy, it’s important to reevaluate your coverage every few years to accommodate any changes in your life or income, to ensure you have the appropriate coverage at an affordable cost.
So, how do you know what’s right for you and your family now?
Begin by determining your life insurance goals, which may include:
By working together, we’ll review your life insurance needs and goals and determine if you have the right protection. Next, we’ll ensure we’ve gathered information on all policies you and/or your spouse may be covered under, including any policies purchased directly through an insurer or paid for by your employer(s), and any policies you may have carried over from former employers. This will help determine if there are any gaps in your current coverage or if you’re paying for more coverage than your loved ones may need in your absence.
Term vs. Whole Life Insurance
There are two primary types of life insurance: term and whole life or “permanent” insurance.
Keep in mind, it’s important to review your insurance needs whenever you experience a major life change, such as a significant increase or decrease in your income, a change in your marital status, or in the number of dependents you support.
To determine if you have the right coverage at the right cost, call the office to schedule a comprehensive insurance review.
1 “What are the principal types of life insurance.” Insurance Information Institute, https://www.iii.org/article/what-are-principal-types-life-insurance. Accessed 17 MAY 2023.
This information was written by KRW Creative Concepts, a non-affiliate of the Broker/Dealer.
This communication is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.
The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable by having the policy approved. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications.